Moody’s upgrades outlook on JSW Steel to positive from stable

New Delhi: Moody’s Ratings upgraded its outlook on domestic steel major JSW Steel and its US-based arm Periama Holdings LLC to positive from stable.

The change in outlook reflects JSW Steel’s meaningful expansion in operating scale, reinforcing its position as India’s largest steel producer, Hui Ting Sim, a Moody’s Ratings Assistant Vice President and Analyst said in a report on Wednesday.

Hui Ting Sim said the ramp-up of operations at recently completed projects will drive higher earnings and support sustained improvement in the company’s credit metrics.

The rating action also reflects our expectation that JSW Steel will implement its growth plans with financial discipline, and it will proactively manage the refinancing of significant debt obligations, the analyst said.

“Moody’s Ratings (Moody’s) has changed the outlook on JSW Steel Limited (JSW Steel) and Periama Holdings LLC’s (Periama Holdings) ratings to positive from stable,” the report said.

On the rationale behind the move, Moody’s said JSW Steel’s production capacity grew by around 20 per cent over the past fifteen months to reach 35.7 million tonnes per annum (mtpa), with plans for a further increase of about 20 per cent by 2028. In FY25, the company commissioned 6 mtpa of crude steel capacity in India.