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