This study examines how credit rating changes influence the financial strategies of Indonesian companies during the 2013–2023 period. It investigates on how Indonesian companies’ capital structure in response of three types of credit rating changes: categorical rating change (CR), notch rating change (NR), and movements between investment-grade and speculative-grade categories (IGSG rating change). This study using quantitative method approach, using public secondary data from Indonesian’s Credit Rating Agency, S&P Capital IQ, and the Indonesia Stock Exchange (IDX). In this study, net debt issuance was used to measure companies’ capital structure adjustments, with control variables such as firm-specific factors (profitability, liquidity, leverage, and size) and macroeconomic indicators (GDP growth, interest rates, and stock market performance). Hypotheses were tested using multiple linear regression to determine the significance of each rating change scenario. The findings reveal that categorical rating downgrade has a significant effect to companies’ debt issuance, reflecting companies’ cautious approach in managing financial risk. Categorical rating upgrades, however, had a limited effect, reflecting a tendency among companies to favor internal funding over external debt issuance when credit ratings improved. These findings emphasize the conservative financial strategies adopted by Indonesian companies. Furthermore, notching adjustments and investment-grade to speculative-grade transitions show negligible effects on capital structure decisions, indicating a lack of responsiveness to minor rating changes or broad grade transitions. These results highlight the conservative financial behavior of Indonesian companies in managing credit risks. In conclusion, categorical rating change, especially the categorical rating downgrades stand out as the most significant factor influencing companies' debt issuance. These findings offer important insights into the impact of credit rating changes on corporate financing decisions in Indonesia.