Ind-Ra upgrades long-term issuer rating of Jindal Stainless with stable outlook

2 Feb 2022 , 02:25 PM

Jindal Stainless Limited has announced that India Ratings and Research (Ind-Ra), a credit rating agency, has upgraded the long-term issuer rating assigned to the company to ‘IND AA-’ with a stable outlook while resolving the Rating Watch Evolving (RWE). The agency had previously assigned the ‘IND A+/RWE’ rating to JSL’s long-term credit facilities.

According to the report released by Ind-Ra, the upgrade and RWE resolution factor in the improved visibility on the amalgamated business and financial profile of JSL and Jindal Stainless (Hisar) Limited (JSHL), continued deleveraging across the group entities, improvement in terms of product mix, improved credit terms with suppliers, and healthy balance sheet liquidity.

Commenting on this upgrade, Managing Director, JSL, Mr. Abhyuday Jindal said, “This rating upgrade underlines our agile business strategy. We continue to maintain a focus on financial and operational discipline. Our agile product mix targeted to overcome market volatility has held us in good stead. With our brownfield capacity expansion on track, the company expects to expand its domestic and international footprint.

Further, India Ratings stated that JSL’s robust EBITDA/tonne is expected to remain at higher levels than the historical average on the back of improved product mix, cost-saving measures, and operating leverage accomplished by the Company. Ind-Ra has also upgraded the rating assigned to JSHL’s credit facilities to ‘IND AA-’ with a stable outlook. Earlier this month, CRISIL Ratings had assigned a ‘CRISIL AA-/Stable’ rating to the long-term bank facilities of JSL.

Jindal Stainless is currently trading at Rs208.35 up by Rs1.45 or 0.7% from its previous closing of Rs206.90 on the BSE. The scrip opened at Rs207.50 and has touched an intraday high and low of Rs211.75 and Rs205.50 respectively.