India's JSW Steel Limited has been assigned a Baa3 long term issuer rating with stable outlook, by Moody's, placing the company at global investment grade, a company statement said on Friday, July 31.
Moody's cited sustained improvement in JSW Steel's credit profile, anchored in its position as India's largest steel producer with cost-competitive, multi-location operations, the statement said.
The rating agency also pointed to material debt reduction from the sustained operating and financial performance and recent asset divestment.
The rating action also reflects the meaningful expansion in JSW Steel's operating scale over the past few years, which Moody's said has reinforced its position as India's largest steel producer.
The agency expects the ramp-up of recently completed projects at Vijayanagar steel mill in southern India together with commissioning of expanded capacity Dolvi steel mill in Maharashtra next year to drive higher earnings and support sustained improvement in credit metrics.
The stable outlook further reflects Moody's expectation that JSW Steel will implement its growth plans with financial discipline, while proactively managing the refinancing of its debt obligations, the statement said.
