Companies

CRISIL assigns A+/Stable rating to long-term credit facilities of Jindal Stainless

Our Bureau New Delhi | Updated on May 13, 2021

The short-term credit facilities of JSL have been rated CRISIL A1

CRISIL Ratings has assigned CRISIL A+/Stable rating for the first time to the long-term credit facilities of Jindal Stainless Ltd (JSL), the firm said on Thursday.

The short-term credit facilities of JSL have been rated CRISIL A1, JSL said in a statement. In January, long-term debt facilities of JSL were assigned BBB+ by both India Ratings and Research and CARE Ratings. The present rating is three notches higher than the earlier ratings.

JSL's position as market leader with a sizeable quantum of exports along with the company’s debt reduction efforts were taken into account, the statement said. JSL’s consolidated external debt levels reduced to ₹2,124 crore in December last year from ₹3,488 crore at the start of fiscal year 2020-21.

“The rating acknowledges considerable deleveraging, as we have reduced the debt by around 35 per cent, and we intend to maintain our focus on robust balance sheet management,” JSL MD Abhyuday Jindal said.

The rating also took note of the consolidated business entity that will emerge after the ongoing merger of JSL and Jindal Stainless (Hisar) Limited, the statement said.

“This merged entity will have a large scale of operation with a high market share along with a diversified product basket,” it added.

Published on May 13, 2021

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