Fitch lifts Japfa Comfeed view to stable

Fitch Ratings said it revised PT Japfa Comfeed Indonesia Tbk.'s outlook to stable from negative.

The agency also said it affirmed the long-term issuer default rating at BB-, along with its senior unsecured rating at BB-.

Fitch also said it upgraded Japfa's national long-term rating to AA-(idn) from A+(idn).

The agency also said it affirmed the dollar notes issued by Comfeed Finance BV due in 2018.

Fitch also upgraded the company’s Rp 1.5 trillion bonds due in 2017 to AA-(idn) from A+(idn) Rp 3 trillion bond program and Rp 1 trillion of bonds issued under the program to AA-(idn) from A+(idn).

The outlook revision reflects the improved industry dynamics following intervention by the Indonesian government to address the demand-supply imbalance, lower leverage driven mainly by higher profitability and better liquidity, the agency said.

Apart from stronger cash flows, Japfa's liquidity also has been boosted by its bond issue in November 2016 and equity issuance in August 2016, Fitch said.

This has alleviated repayment risks related to upcoming bond maturities in 2017 and 2018, the agency said.

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