NEW DELHI, FEB 2, 2022
India Ratings and Research (Ind-Ra) has upgraded the long-term issuer rating assigned to Jindal Stainless Limited (JSL) to ‘IND AA-’ with a stable outlook, while resolving the Rating Watch Evolving (RWE).
The agency had previously assigned ‘IND A+/RWE’ rating to JSL’s long-term credit facilities.
As per 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. Earlier this month, CRISIL Ratings had assigned ‘CRISIL AA-/Stable’ rating to the long-term bank facilities of JSL.
Further, India Ratings believes that JSL’s strong EBITDA/tonne is expected to remain higher than the historical average given the 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 stable outlook.
Commenting on this upgrade, JSL Managing Director Abhyuday Jindal said, “This rating upgrade underlines our agile business strategy. We continue to maintain focus on financial and operational discipline. Agility in our product mix to overcome market volatility has held us in good stead. With our brownfield capacity expansion on track, we expect to further strengthen our domestic and international footprint.”