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Informist, Tuesday, Dec. 16, 2025

 

NEW DELHI – India Ratings & Research has placed its outlook on JSW Steel Ltd.'s long-term issuer rating and non-convertible debentures on "rating watch with positive implications" while retaining its rating on the metals conglomerate at "AA", the company said in an exchange filing Tuesday. This change from the earlier "stable" outlook indicates that India Ratings could upgrade or affirm its rating on JSW Steel after the joint venture between its step-down arm, Bhushan Power and Steel Ltd., and Japan-based JFE Steel Corp. goes through.

 

The non-convertible debenture being rated is of INR 100 billion. On Dec. 3, JSW Steel announced that its board had approved the formation of a joint venture between Bhushan Power and JFE Steel Corp. for crude steel business with a planned capacity of 4.5 million tonnes per annum.

 

This joint venture is expected to generate cash flows of around INR 320 billion for JSW Steel and reduce the company's net debt of around INR 50 billion through de-consolidation of Bhushan Power, which is expected to reduce JSW Steel's overall debt by around INR 370 billion, India Ratings said in a note dated Monday. 

 

"Ind-Ra believes the transaction would entail forgoing BPSL's capacity, around 10% of JSWL's consolidated EBITDA (BPSL's share) and a reduction in JSWL's consolidated debt of about INR370 billion. This would improve JSWL's overall credit profile over FY26-FY27, with the consolidated net leverage (including acceptances) reducing by around 1x," the rating agency said.

 

For the September quarter, JSW Steel had reported a consolidated net profit of INR 16.23 billion on a revenue of INR 451.52 billion. At 1432 IST, shares of JSW Steel were down 2.7% at INR 1,085.30 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Anand JC

Edited by Rajeev Pai

 

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