Fitch rates Japfa Comfeed bond AA-(idn)

Fitch Ratings said it assigned a national long-term rating of AA-(idn) to PT Japfa Comfeed Indonesia Tbk.'s proposed senior unsecured bond.

The bond issue of up to Rp 1 trillion is part of the existing Rp 3 trillion bond program, which was upgraded to AA-(idn) as of Dec. 14, 2016, Fitch said, and is consequently rated at the same level as the program.

The proceeds will be used mainly to refinance its outstanding $195 million 6% senior unsecured notes, which are due in 2018, the agency said.

The ratings denote expectations of very low default risk relative to other issuers or obligations in the same country, Fitch said.

The ratings also reflect the company's improved EBITDA margin to 13.1% in 2016 from 9.1% in 2015, the agency said.

This was driven by more conducive market conditions, Fitch said.

The Indonesian government has taken steps to manage poultry supply since the second half of 2015, the agency added.

© 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.