Indofood rating outlook raised

Indofood rating outlook raised

JAKARTA: PT Indofood Sukses Makmur, the world's biggest maker of instant noodles, had its B1 local currency debt rating outlook raised to stable from negative by Moody's Investors Service said.

"The change in outlook reflects the company's maintenance of its dominant position in Indonesia's instant noodle and flour markets -- although profitability is declining -- its relatively strong credit metrics and management's intention to lower leverage," Moody's said in a statement.

The B1 rating reflects Indofood's leading position in the nation's processed food market, the rating company said. The outlook for the company's B2 foreign currency rating remains stable.

Jakarta-based Indofood commands about 80 percent of the instant-noodle market in the country and 70 percent of the domestic flour market, the rating company said. The company is facing competition from a growing number of local producers, including detergent maker Wings Group, which also makes noodles. -- Agencies