PT Japfa's capital spending in 2019 substantially exceeded our earlier forecasts, leading to higher leverage and reduced financial headroom. The company's growth aspirations could lead to persisting negative free operating cash flow, rising debt, and FFO interest coverage falling below 4.0x in 2020, amid rising economic headwinds in Indonesia and a weakening rupiah. On March 24, 2020, S&P Global Ratings revised its outlook on the Indonesia-based integrated poultry producer to negative from stable. We also affirmed our long-term issuer credit rating on the company and the issue rating on its US$250 million senior unsecured notes maturing in 2022 at 'BB-'. The negative outlook reflects the prospects of rising leverage and weakening interest coverage ratios over the next 12 months barring
