Moody's puts JSW Steel's rating on review for downgrade over Covid-19 shock

Agency says weaknesses in JSW's credit profile, such as its exposure to weakening steel demand for manufacturing and volatile material costs, have left it vulnerable to shifts in market sentiment

Rating agency Moody's has placed JSW Steel Ltd's corporate family rating “Ba2” under review for downgrade, as the steel sector has been significantly affected by the Covid-19 outbreak.

The deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across sectors, regions and markets, Moody’s said in a statement today.

The weaknesses in JSW's credit profile, such as its exposure to weakening steel demand for manufacturing and volatile material costs, have left it vulnerable to shifts in market sentiment in these unprecedented operating conditions.

Even prior to the coronavirus outbreak, sluggish