Fitch revises view on Mayora to negative

Fitch Ratings said it revised the outlook on PT Mayora Indah Tbk.'s to negative from stable, and affirmed the AA(idn) ratings on the issuer and its Rp 550 billion of unsecured bonds.

“The revision of the rating outlook to negative reflects the risks that prolonged high commodity prices and rising inflationary pressures might hamper Mayora's recovery. These risks are partly offset by Mayora's low leverage and leading market position,” Fitch said in press release.

The agency, however, noted commodity prices have declined somewhat since June, but the effect will be delayed by two to three months given existing inventory and supplier contracts.

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