S&P lifts Japfa Comfeed view to stable

S&P said it revised the outlook on Japfa Comfeed Indonesia Tbk. to stable from negative.

The agency also said it affirmed the company’s B long-term corporate credit rating, along with the B long-term rating on the senior unsecured notes that Japfa guarantees.

In line with the outlook revision, S&P also said it raised the long-term Asean regional scale rating on the company to axBB- from axB+.

The company has outlined a credible strategy to address the refinancing risk associated with its 2017 debt maturities, S&P explained.

Japfa's liquidity also has improved and its refinancing risk has reduced following a sale of equity to KKR & Co., the agency said.

KKR now owns about 12% of PT Japfa, S&P said, and Japfa already received the proceeds of about Rp 700 billion.

The agency also said it believes the company is committed to using most of the equity proceeds to repay its debt.

Also, Japfa is in advanced stages of setting up bank facilities totaling Rp 1 trillion, S&P said.

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