JSW Steel Limited has informed the Exchange about Credit Rating- Revision
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Awaiting price reaction for this filing.
Fitch Ratings has placed JSW Steel's Long-Term Issuer Default Rating of 'BB' on Rating Watch Positive, upgrading the outlook from 'Stable'. The move follows the board's approval to form a 50:50 joint venture with Japan's JFE Steel Corporation, which will acquire the steel assets of subsidiary Bhushan Power and Steel Limited (BPSL) for around INR244.83 billion. The transaction is expected to bring in about INR324 billion in cash to JSW Steel over the next six months, helping cut its EBITDA net leverage from 4.0x in FY25 to 2.6x in FY26 and 2.1x in FY27. The same positive watch has also been placed on the 'BB' rating of outstanding senior unsecured bonds of JSW Steel and its subsidiary Periama Holdings. Fitch will resolve the watch once the JV receives regulatory approvals (including from the Competition Commission of India), which JSW Steel expects by end-FY26.
This is a credit-positive development — the rating itself has not been upgraded yet, but being on positive watch signals Fitch is considering an upgrade if the JV goes through. For shareholders, this points to a meaningful improvement in the company's debt profile and lower leverage ahead, which is generally supportive of the stock. The main risk is execution: if the JV fails to close, the positive watch could be reversed.