Fitch revises Japfa's view to negative

Fitch Ratings said it revised the outlook on PT Japfa Comfeed Indonesia Tbk.'s long-term issuer default rating to negative from stable. Fitch affirmed the IDR at BB-.

At the same time, Fitch Ratings Indonesia revised the outlook on Japfa’s national long-term rating to negative from stable and affirmed the rating at A+(idn).

“The negative outlook reflects interruptions to the general operating environment for domestic poultry producers that stem from the coronavirus pandemic. In particular, we believe demand for poultry will soften as the food and beverage industry has been crippled by social distancing measures, while the economic downturn will lead to a higher poverty rate and reduce consumers' purchasing power. As a result, we see volume decline and margin contraction for Japfa,” Fitch said in a press release.

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