Japfa's operating margins and cash flows for the nine months ended Sept. 30, 2014, were materially below our expectations. We believe industry conditions will remain tough for the next six months at least because of subdued demand and persisting overcapacity. We are revising our rating outlook on the Indonesia-based poultry feed and commercial farming company to negative from stable to reflect the tougher operating conditions and the possibility of the company's capital spending remaining high. We are affirming our 'BB-' long-term corporate credit rating on Japfa and our 'BB-' rating on the senior unsecured notes issued by Comfeed Finance B.V. that Japfa guarantees. In line with the outlook revision, we are lowering our long-term ASEAN regional scale rating on Japfa
