International credit rating agency Moody’s has upgraded Indian steelmaker JSW Steel Limited’s corporate family credit rating to Ba1 from Ba2, while its outlook for the company has changed to stable from positive.
According to Moody’s, the upgrade reflects JSW’s continued strong operating performance, while the stable outlook reflects its continuing good liquidity.
The agency stated the upgrade also reflects the commissioning of the company’s 5 million mt per year brownfield expansion at Dolvi in November 2021 and its ramp-up thereafter, which will translate into at least a 20 percent increase in steel shipments during the current fiscal year.
Moody’s noted that market conditions will gradually moderate over the next 12-18 months. Rising global interest rates to curb inflation and an increase in Indian steel export taxes will slightly dampen steel prices.