Moody's confirms JSW Steel's Ba2 ratings with negative outlook due to Covid

Moody's expects JSW's leverage will increase to an estimated 6.4x by the end of fiscal 2021

Moody's Investors Service has confirmed JSW Steel Ltd's Ba2 corporate family rating and Ba2 senior unsecured debt rating with a negative outlook.

"The rating confirmation recognises that while JSW's credit profile will deteriorate reflecting the challenges brought by the pandemic, we believe that the company's financial metrics will likely recover to levels commensurate with the current ratings by the fiscal year ending March 2023 (fiscal 2023)," said Kaustubh Chaubal, Moody's Vice President and Senior Credit Officer.

"However, JSW's leverage and coverage will remain weak until that time, and the negative outlook indicates the risk of a downgrade if the steel industry does