(Reuters) - Fitch Ratings upgraded Indonesia's credit status on Thursday by one notch to BBB minus, the first ratings agency to give the emerging market an investment grade.

The upgrades reflect the country's strong and resilient economic growth, low and declining public debt ratios, strengthened external liquidity and a prudent overall macro policy framework, said Philip McNicholas, director in Fitch's Asia-Pacific Sovereign Ratings group.

Financial markets have long expected Indonesia's ratings to be upgraded to investment grade, which will lower the country's borrowing costs and close the gap with the so-called BRIC nations of Brazil, Russia, India and China.

Fitch's rivals, Standard & Poor's and Moody's, both rate Indonesia at the highest non-investment level.