S&P rates Japfa Comfeed notes BB-

Standard & Poor's said assigned a BB- long-term corporate credit rating to PT Japfa Comfeed Indonesia Tbk., along with an axBB+ Asean regional scale rating.

The agency also said it assigned a BB- long-term rating to a proposed issue of up to $200 million in unsecured notes that Japfa guarantees.

Comfeed Finance BV, a special-purpose vehicle that Japfa fully owns, will issue the notes.

The outlook is stable.

The ratings reflect the company's high concentration in the poultry industry and exposure to fluctuations in the Indonesian rupiah and raw material prices, S&P said.

Japfa's aggressive expansion plans and reliance on short-term working capital financing also constrain the rating, the agency said.

The company's strong domestic market share in the poultry feed and breeding segments, partial vertical integration and positive industry prospects partly offset the weaknesses, S&P said.

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