S&P trims Japfa Comfeed

S&P said it downgraded its ratings for PT Japfa Comfeed Indonesia Tbk. and its senior unsecured notes due March 2026 to B+ from BB-.

The agency noted the weakening in the issuer’s credit quality is in line with that of its parent Japfa Ltd. The parent distributed its entire shareholding in its China dairy business to its shareholders leading S&P to remove a notch for uplift from Japfa Comfeed’s ratings.

“We now view Japfa Comfeed and Japfa Ltd. as having the same level of creditworthiness. This is essentially because Japfa Comfeed will account for 80%-90% of the parent's consolidated EBITDA and 60%-70% of the consolidated debt,” S&P said in a press release.

The outlook is stable.

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