JSW Steel Long-Term Credit Ratings Placed on ‘Rating Watch Positive’

ICRA Limited has placed JSW Steel’s ‘AA’ ratings on long-term bank facilities and non-convertible debentures on ‘Rating Watch with Positive Implications’. The ratings for short-term bank facilities and commercial papers remain at ICRA ‘A1+’. This action follows ICRA’s press release on December 12, 2025, reflecting potential improvements in JSW Steel’s financial risk profile due to strategic initiatives.

ICRA Revises Outlook

ICRA Limited announced on December 12, 2025, that the long-term credit ratings for JSW Steel have been placed on ‘Rating Watch with Positive Implications’. This revision impacts the ‘AA’ ratings assigned to the company’s long-term bank facilities and non-convertible debentures.

Ratings Reaffirmed

While the long-term ratings are under review for a potential upgrade, ICRA has affirmed the ratings for JSW Steel’s short-term bank facilities and commercial paper at ‘A1+’. This indicates ICRA’s continued confidence in the company’s short-term financial obligations.

Rationale for the Outlook Revision

The decision to place the long-term ratings on ‘Rating Watch with Positive Implications’ stems from ICRA’s expectation of an improvement in JSW Steel’s financial risk profile, largely due to a strategic 50:50 joint venture with JFE Steel Corporation, as announced on December 3, 2025. This partnership includes the transfer of Bhushan Power and Steel Limited (BPSL) into the joint venture, resulting in significant cash inflows and deleveraging of JSW Steel’s balance sheet. ICRA anticipates further improvements in JSW Steel’s leverage and liquidity profile.

Impact of JFE Steel Corporation Partnership

The partnership with JFE Steel Corporation will not only provide financial benefits but is also expected to enhance JSW Steel’s technological expertise and enable the production of higher-value-added steel products. ICRA believes this strategic alliance will further strengthen JSW Steel’s market position.

Revised Credit Ratings Details

The following table details the specific credit rating actions taken by ICRA for non-convertible debentures issued by JSW Steel:

Source: BSE