Moodys upgrades JSW Steels ratings to Ba1; changes outlook to stable

Moodys Investors Service has upgraded JSW Steels corporate family rating (CFR) to Ba1 from Ba2.

June 28, 2022 2:16 IST | capital market
Moodys has also upgraded to Ba1 from Ba2 JSWs senior unsecured notes rating, the guaranteed backed senior unsecured rating on Periama Holdings LLC, and the US$40 million guaranteed senior unsecured revenue bonds issued by Jefferson County Port Authority. At the same time, Moodys has changed the ratings outlook on JSW Steel and Periama Holdings LLC to stable from positive. Kaustubh Chaubal a Moodys senior vice president, said: The upgrade reflects JSWs continued strong operating performance and consistently strong credit metrics while maintaining good liquidity. In Moodys view, JSWs substantially stronger operating performance will help to sustain its deleveraging. The companys Moodys-adjusted leverage, as measured by consolidated adjusted debt/EBITDA, will remain comfortably below the upgrade trigger of 3.0x (for a Ba1 CFR), having already declined to 4.3x at March 2021 from 5.9x at March 2020, and more recently to an estimated 2.2x at March 2022. The upgrade also reflects the successful commissioning of the companys 5 million tonnes per annum (mtpa) brownfield expansion at Dolvi in November 2021 and its ramp up thereafter, which will translate into at least a 20% increase in steel shipments during the current fiscal year. JSW Steel is one of Indias largest steel producers with an installed steelmaking capacity of 25.5 million tonnes per annum (mtpa). Its international operations comprise of 1.2 million net tonnes per annum (mntpa) plate mills and 0.5 mntpa pipe mills in Texas; a 3.0 mntpa hot rolling mill and a 1.5 mntpa electric arc furnace in Ohio; and a 1.3 mtpa long steel rolling facility in Piombino, Italy. The steel manufacturer reported a 23% fall in consolidated net profit to Rs 3,234 crore on a 74% increase in net sales to Rs 46,026 crore in Q4 FY22 over Q4 FY21. The scrip rose 0.73% to currently trade at Rs 575.90 on the BSE. Powered by Capital Market - Live News

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