S&P assigns Japfa notes BB-

S&P said it assigned its BB- long-term issue rating to a proposed issuance of U.S. dollar-denominated senior unsecured notes by PT Japfa Comfeed Indonesia Tbk.

“We equalize the issue rating on the proposed notes with our BB- issuer credit rating on PT Japfa. This is because the issuer primarily operates in Indonesia, a jurisdiction where we believe the priority of claims in a theoretical bankruptcy is highly uncertain due to the weak jurisdictional context,” the agency said in a press release.

The company intends to use most of the proceeds to refinance its $250 million notes due in March 2022. The balance will be used for capital expenditure, working capital and general corporate purposes.

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