Fitch revises PT Japfa view to stable

Fitch Ratings said it revised PT Japfa Comfeed Indonesia Tbk.’s outlook to stable from negative and affirmed the issuer rating at BB-. Simultaneously, Fitch also revised the outlook on Japfa’s national long-term rating to stable from negative and affirmed the rating at A+(idn).

“The outlook revision follows a rebound in Japfa’s 4Q20 EBITDA margin, resulting in a net debt/EBITDA ratio that is below our negative sensitivity of 2.5x as at end-2020, down from our previous expectation of 3.9x. The stronger margin was supported by stabilizing day-old chick and live bird prices, higher sales volume and a defensive animal feed margin. Market stability, coupled with lower working capital requirements during the year, have helped Japfa to de-lever faster than we had expected,” the agency said in a press release.

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