We believe Japfa's strong operating performance will lead to lower leverage and higher cash flow adequacy in 2016, which should help the company's refinancing initiatives. In addition, Japfa is taking appropriate steps to proactively address its 2017 and 2018 debt maturities, reducing near-term liquidity risks. We are raising our long-term corporate credit rating on Japfa and our long-term issue rating on the company's guaranteed senior debts to 'B+' from 'B'. We are also raising our long-term ASEAN regional scale rating on the Indonesia-based integrated poultry producer to 'axBB' from 'axBB-'. The stable outlook reflects Japfa's reduced refinancing risk and our view of more supportive industry conditions in the next 12 months. On Nov. 10, 2016, S&P Global Ratings raised its
