Moody's revises JSW Steel's Corporate Family rating to ‘Ba1/Stable'; stock adds ~1%

28 Jun 2022 , 12:57 PM

JSW Steel Limited informed that Moody’s Investors Service vide their release dated June 27, 2022, has upgraded the Company’s Corporate Family Rating (CFR) to Ba1 (Stable) from Ba2 (Positive).

Further, the rating agency has also revised the outlook and rating of Senior Unsecured Notes Rating on Periama Holdings LLC, and the US$40 million guaranteed senior unsecured revenue bonds issued by Jefferson County Port Authority from Ba2 to Ba1.

At the same time, Moody’s has upgraded the rating outlook on JSW Steel Limited and Periama Holdings LLC to stable from positive.

“The upgrade reflects JSW’s continued strong operating performance and consistently strong credit metrics, as well as good liquidity,” commented Moody’s Senior Vice President Kaustubh Chaubal.

According to Moody’s, JSW’s significantly improved operating performance will aid in the company’s deleveraging. Moody’s-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 fallen to 4.3x in March 2021 from 5.9x in March 2020, and more recently to an estimated 2.2x in March 2022.

JSW Steel Ltd is currently trading at Rs575.65 up by Rs3.9 or 0.68% from its previous closing of Rs571.75 on the BSE. The scrip touched intraday high and low of Rs580.50 and Rs568 respectively.