JSW Steel has been assigned a Baa3 long-term issuer rating with a stable outlook by Moody’s Ratings, marking its entry into global investment grade. The rating agency also upgraded JSW Steel’s senior unsecured ratings to Baa3. This upgrade is attributed to the company’s sustained improvement in credit profile, cost-competitive operations, and significant debt reduction.
JSW Steel Earns Global Investment Grade from Moody’s
JSW Steel Limited, India’s largest steel producer, has achieved a significant milestone by being assigned a Baa3 long-term issuer rating with a stable outlook by Moody’s Ratings. This development places the company at global investment grade, a testament to its robust financial performance and market position.
Upgraded Ratings and Financial Strengthening
In addition to the issuer rating, Moody’s has also upgraded JSW Steel’s senior unsecured ratings and its guaranteed senior unsecured revenue bonds to Baa3 from Ba1. This move reflects Moody’s recognition of the sustained improvement in JSW Steel’s credit profile, anchored by its position as India’s leading steel producer with cost-competitive, multi-location operations. The agency also cited material debt reduction resulting from sustained operating and financial performance, alongside recent asset divestments.
The company’s financial profile has strengthened considerably, with net debt reducing from ₹76,563 crore as of March 31, 2025, to ₹46,157 crore as of June 30, 2026. This reduction of over ₹30,000 crore in fifteen months has led to an improvement in the Net Debt/EBITDA ratio to 1.81x by March 2026 and further to 1.46x by June 2026, from 3.34x as of March 31, 2025.
Broader Re-rating Endorsement
The Baa3 rating from Moody’s follows a series of positive re-ratings from other major agencies over the past month. Fitch upgraded the company to ‘BB+’ from ‘BB’ with a Positive outlook on July 6, CARE Ratings upgraded it to CARE AA+ from CARE AA on July 8, and ICRA upgraded it to [ICRA]AA+ from [ICRA]AA on July 30. These collective upgrades signify a comprehensive endorsement of JSW Steel’s deleveraging strategy and financial discipline.
Leadership Perspective
Mr. Jayant Acharya, Joint Managing Director & CEO, JSW Steel Limited, commented, “This rating is a recognition of the strength and resilience of JSW Steel’s business – our scale as India’s largest steel producer, our cost-competitive operations across multiple locations, and the quality of assets we have built over the years. Global investment grade strengthens our access to international capital markets on more competitive terms. It also affirms the confidence that customers, partners and investors worldwide place in JSW Steel.”
Mr. Swayam Saurabh, Chief Financial Officer, JSW Steel Limited, added, “This rating is a validation of the discipline this organization has practiced through a full business cycle, not just of the numbers on our balance sheet. Over the last few years, we made a conscious shift towards sharper capital allocation – being more selective about where we deploy capital, more deliberate about the pace of our growth while managing key financial ratios across cycles.”
Source: BSE
