JSL gets major credit re-rating following improvements in operating efficiency

In a first-ever development, Jindal Stainless Limited (JSL) announced that CRISIL Ratings has assigned ‘CRISIL A+/stable’ to the long-term credit facilities of the company. The present rating is three notches higher than the earlier ratings.   

The key determinants of the rating upgrade were the superior market position of JSL, which enjoys a sizeable quantum of exports and significant improvements in the overall operating efficiency thereby, ensuring stable profitability. The credit rating agency has also taken into account a significant improvement of financial risk profile with consistent debt reduction over the past few years.   

In addition, the rating also factored the strong consolidated business entity that will emerge after the merger of JSL & Jindal Stainless (Hisar) Limited, which is currently under process. The merged entity is poised to benefit from a large scale of operation with a high market share along with a diversified product basket.  

Commenting on this development, Abhyuday Jindal, Managing Director at JSL said that the rating is a testament to a strong business model at JSL and the inherent strengths of the Group to continue delivering strong business performance. 

At the time of market closing on Friday, the shares of JSL were trading at Rs 91.95, down by 4.07 per cent or Rs 3.90 per share. The 52-week high of the company is recorded at Rs 103.45 while its 52-week low is Rs 26.25 on BSE.