Research Update: Japfa Comfeed 'B+' Rating Affirmed; Outlook Stays Negative On Slow EBITDA Margin Recovery, High Short-Term Debt

We expect the EBITDA margins of Japfa Comfeed Indonesia Tbk. PT and its Singapore-based parent Japfa Ltd. will improve, albeit modestly, over the next six to 12 months. We also expect working capital outflow to moderate toward the end of 2023. The short-term debts of Japfa Comfeed and Japfa Ltd. have increased, but the companies should not have imminent refinancing or liquidity risk, as they are supported by well-established banking relationships. On Aug. 10, 2023, S&P Global Ratings affirmed its 'B+' long-term issuer credit and issue ratings on Japfa Comfeed. The negative outlook reflects our uncertainty about the timely recovery of EBITDA margin over the next six to 12 months, due to volatile industry conditions. Rising short-term maturities could further

...- We expect the EBITDA margins of Japfa Comfeed Indonesia Tbk. PT and its Singapore-based parent Japfa Ltd. will improve, albeit modestly, over the next six to 12 months. We also expect working capital outflow to moderate toward the end of 2023. - The short-term debts of Japfa Comfeed and Japfa Ltd. have increased, but the companies should not have imminent refinancing or liquidity risk, as they are supported by well-established banking relationships. - On Aug. 10, 2023, S&P Global Ratings affirmed its 'B+' long-term issuer credit and issue ratings on Japfa Comfeed. - The negative outlook reflects our uncertainty about the timely recovery of EBITDA margin over the next six to 12 months, due to volatile industry conditions. Rising short-term maturities could further erode the liquidity buffer....

Research Update