Overview Key strengths Key risks Second-largest poultry producer and breeder in Indonesia's market. Slower recovery in credit metrics for Japfa Ltd., the Singapore-based parent. This could continue to exacerbate the rating pressure on Japfa Comfeed. Vast distribution system with vertical integration that is difficult to replicate. Tight liquidity buffer due to elevated short-term funding. Volatile profitability due to supply-demand and currency fluctuations. High focus on poultry products, and geographic concentration in Indonesia. Japfa Ltd. has weaker credit metrics than Japfa Comfeed because of concurrent weak Vietnam swine operations within its Animal Protein Other (APO) business segment. Japfa Ltd. could take longer to return its ratio of funds from operations (FFO) to debt to 20% than Japfa Comfeed. We expect the
