MSP Steel & Power Limited has informed the Exchange about Credit Rating- New
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MSP Steel & Power Limited has received a credit rating upgrade from CareEdge Ratings. The long-term bank facilities rating has been upgraded from CARE BBB-; Positive to CARE BBB; Stable, while short-term bank facilities have been upgraded from CARE A3 to CARE A3+. Total rated facilities stand at ₹371.59 crore. The upgrade reflects the company's significantly improved capital structure, driven by the conversion of Optionally Convertible Debentures (OCDs) into equity, which reduced total debt from ₹1,020.15 crore in FY24 to ₹333.29 crore in FY25. Overall gearing ratio improved sharply from 2.41x to 0.36x, and debt coverage indicators strengthened meaningfully. The company reported stable revenue of ₹2,906 crore in FY25 and improved Q1FY26 performance with PAT margin rising to 2.51%.
This rating upgrade signals improved financial health and reduced leverage, which is positive for shareholders. It may lower future borrowing costs and boost lender confidence, though the company still faces risks from steel industry cyclicality and raw material price volatility.