S&P lifts Japfa Comfeed

S&P said it raised the long-term corporate credit rating on PT Japfa Comfeed Indonesia Tbk. to B+ from B.

The agency also said it raised the company’s long-term Asean regional scale rating to axBB from axBB-, along with the long-term issue rating on the senior unsecured debts that Japfa guarantees to B+ from B.

The outlook is stable.

The upgrades reflect Japfa's initiatives to lengthen its debt maturity profile and because its operating and financial performances have surpassed base-case expectations, S&P said.

Japfa's strong operations and financial results should lead to increased cash flows in 2016, the agency added.

Low raw material costs in the feed business, as well as rising prices in the day-old chick and broiler chicken segments helped drive record profitability, S&P explained.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.