diff --git a/idea/src/org/jetbrains/kotlin/idea/intentions/ToRawStringLiteralIntention.kt b/idea/src/org/jetbrains/kotlin/idea/intentions/ToRawStringLiteralIntention.kt
index 2bad1d428f5..6154d386cf5 100644
--- a/idea/src/org/jetbrains/kotlin/idea/intentions/ToRawStringLiteralIntention.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/intentions/ToRawStringLiteralIntention.kt
@@ -82,7 +82,7 @@ class ToRawStringLiteralIntention : SelfTargetingOffsetIndependentIntention<KtSt
     }
 
     private fun hasTrailingSpaces(text: String): Boolean {
-        var afterSpace = true
+        var afterSpace = false
         for (c in text) {
             if ((c == '\n' || c == '\r') && afterSpace) return true
             afterSpace = c == ' ' || c == '\t'
diff --git a/idea/testData/intentions/toRawStringLiteral/trailingSpace3.kt b/idea/testData/intentions/toRawStringLiteral/trailingSpace3.kt
index b796e8731c6..0ec2291cf8f 100644
--- a/idea/testData/intentions/toRawStringLiteral/trailingSpace3.kt
+++ b/idea/testData/intentions/toRawStringLiteral/trailingSpace3.kt
@@ -1,2 +1 @@
-// IS_APPLICABLE: false
 val v = <caret>"\n Hello, world!"
\ No newline at end of file
diff --git a/idea/testData/intentions/toRawStringLiteral/trailingSpace3.kt.after b/idea/testData/intentions/toRawStringLiteral/trailingSpace3.kt.after
new file mode 100644
index 00000000000..3c8c026fbbf
--- /dev/null
+++ b/idea/testData/intentions/toRawStringLiteral/trailingSpace3.kt.after
@@ -0,0 +1,2 @@
+val v = """
+ Hello, world!"""
\ No newline at end of file