InvestorQ : Why has Fitch upgraded the rating outlook for JSW Steel?
Archita Jajjoo made post

Why has Fitch upgraded the rating outlook for JSW Steel?

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Niti Shenoi answered.
4 weeks ago
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Fitch Ratings upgraded debt rating outlook on JSW Steel to positive from negative. This was because JSW Steel has seen a sharp improvement in its business metrics and its outlook due to the sharp increase in the demand for steel as well as strong global steel prices. This will reduce the cost of debt for JSW Steel to borrow in the Indian and global markets.

The outlook revision was also triggered by the estimate that JSW will see a sharp fall in its overall leverage levels. This analysis would obviously exclude the impact of leverage due to the Bhushan Power & Steel acquisition. JSW Steel has added 5 MT capacity this year and that is likely to be EBITDA accretive.

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