India's Largest Integrated Steel Company Achieves Global Investment Grade Status as Moody's Upgrades Rating to Baa3
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JSW Steel has received a Baa3 long-term issuer rating with a stable outlook from Moody's, making it a globally investment-grade-rated company following sustained debt reduction and improved financial performance.
✨ Key Takeaways
On Friday, Indian equity benchmark indices traded higher, with the benchmark Nifty 50 index rising 66.45 points, or 0.27 per cent, to 24,383.60. Amid the positive market sentiment, JSW Steel share price traded marginally lower by 0.07 per cent at Rs 1,275.20 after the company announced that Moody's Ratings had upgraded its long-term issuer rating to Baa3 with a stable outlook, placing the company in the global investment-grade category.
Moody's Upgrades JSW Steel to Investment Grade
JSW Steel announced that Moody's Ratings has assigned the company a Baa3 long-term issuer rating with a stable outlook, marking its entry into the global investment-grade category.
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Download Service BrochureThe rating agency also upgraded the company's senior unsecured ratings and the guaranteed senior unsecured revenue bonds issued by Jefferson County Port Authority to Baa3 from Ba1, while withdrawing the earlier Ba1 corporate family rating.
Strong Balance Sheet Drives Upgrade
According to Moody's, the rating upgrade reflects JSW Steel's position as India's largest steel producer, supported by cost-competitive multi-location operations, sustained improvement in operating performance and significant debt reduction.
The company's net debt declined sharply from Rs 76,563 crore as of March 31, 2025, to Rs 46,157 crore as of June 30, 2026, representing a reduction of more than Rs 30,000 crore over fifteen months.
As a result, the company's Net Debt-to-EBITDA ratio improved to 1.46x as of June 30, 2026, from 3.34x as of March 31, 2025, reflecting a significantly stronger financial profile.
Growth Plans and Capacity Expansion
Moody's expects the ramp-up of recently completed expansion projects at Vijayanagar and the commissioning of the Dolvi Phase III expansion next year to support higher earnings and further strengthen the company's credit metrics.
As of March 31, 2026, JSW Steel had a crude steel capacity of 31.9 million tonnes per annum (MTPA) in India. Including joint ventures, its steelmaking capacity stood at 36.4 MTPA, with additional expansion projects expected to increase capacity further in the coming years.
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Recent Credit Rating Upgrades
The Moody's upgrade follows a series of positive rating actions for the company. Earlier this month, Fitch Ratings upgraded JSW Steel to 'BB+' with a Positive outlook, while CARE Ratings and ICRA upgraded the company to AA+, highlighting its continued deleveraging and disciplined financial management.
About JSW Steel
JSW Steel Ltd is the flagship company of the JSW Group and India's largest integrated steel producer. The company manufactures a wide range of steel products for infrastructure, automotive, Construction, engineering and industrial applications, with manufacturing facilities across multiple states in India and an expanding global presence.
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Disclaimer: The article is for informational purposes only and not investment advice.