Moody’s turns Indofood view to positive

Moody’s Investors Service said it changed its outlook for PT Indofood CBP Sukses Makmur Tbk. to positive from stable and affirmed the Baa3 ratings on its U.S. dollar bonds.

"The change in outlook to positive reflects ICBP's conservative financial policies and improved credit metrics following the successful integration of Pinehill. This is supported by the company's sizable cash holdings, track record of stable earnings and free cash flow generation," said Yu Sheng Tay, a Moody's analyst, in a statement.

"ICBP's credit quality continues to reflect its dominant market position as Indonesia's largest instant noodle producer. At the same time, the company's strong profitability remains supported by resilient demand for instant noodles, which is considered a food staple in Indonesia," Tay added.

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