Terms and conditions of the transaction were not disclosed but the agency said that the financial impact on Moody's Corporation is not material.
"Indonesia is Southeast Asia's largest economy and is growing rapidly. Demand for Moody's rating services in the country should grow substantially in the coming years as capital investment increases and its domestic capital market develops," says Raymond McDaniel Jr, chairman and chief executive officer of Moody's Corporation.
"Moody's Indonesia gives Moody's a meaningful local presence that will allow us to provide enhanced customer service to both domestic and cross-border Indonesian issuers, and to offer high quality credit ratings, research, analysis and training to local market investors."
Kasnic, established in 1997 and based in Jakarta, is one of two domestic credit rating agencies in Indonesia and specialises in providing rating opinions on debt instruments, including Islamic debt, corporate bonds, asset-backed securities and other structured financings, municipal bonds and medium-term-notes.
Moody's will provide management and technical support, including on rating methodologies and analyst training based on its globally recognised expertise in credit analysis. Moody's Indonesia will convert Kasnic's existing ratings to Moody's "National Scale Ratings", which will provide market participants with domestic ratings reflecting relative credit risk within Indonesia.
"Kasnic's in-depth knowledge of the local market, coupled with Moody's global expertise, will position Moody's Indonesia to better serve the country's fast growing capital market," says Kasnic's president director Minon Almasyhur, who will lead Moody's Indonesia.
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