Japfa's margins and cash flows are likely to remain thin over the next 12 months at least because of tough conditions in Indonesia's downstream poultry segment. We also expect the debt of the Indonesia-based integrated poultry producer to remain elevated, and its cash flow adequacy to remain thin. The weaker rupiah and Japfa's growing proportion of debt due in the next 24 months have also weakened the company's capital structure. We are lowering our long-term corporate credit rating on Japfa and the long-term issue rating on the company's guaranteed senior unsecured notes to 'B+' from 'BB-'. We are also affirming our 'axBB' long-term ASEAN regional scale rating on the company. The stable outlook reflects our expectation that Japfa's FFO-to-debt ratio
