Moody's Affirms Ba1 Rating for JSW Steel

New Delhi, Dec 11 (PTI) Global rating agency Moody's has affirmed Ba1 corporate family rating (CFR) on home-grown JSW Steel Limited (JSW).

JSW's Ba1 CFR reflects the company's large scale and strong market position in India, its competitive conversion costs, resulting from efficient operations and use of the latest furnace technology, the ratings agency said in a report issued on Monday.

Besides, the rating also reflects JSW Steel's continuous efforts in improving its backward integration into key raw materials and good product and end-market diversification, with an increasing focus on value-added products and retail sales, it said.

Moody's said it has also "affirmed the Ba1 ratings on JSW's senior unsecured notes, Periama Holdings LLC's guaranteed backed senior unsecured notes, and the US$40 million guaranteed senior unsecured revenue bonds issued by Jefferson County Port Authority, and maintained the stable outlook on JSW and Periama Holdings."

At the same time, Moody's has assigned Ba1 rating to the proposed USD 145 million bonds to be issued by Jefferson County Port Authority.

The proceeds from the bond issuance will be loaned to JSW Steel USA Ohio, Inc.
(JSW Ohio), a wholly-owned indirect subsidiary of JSW, and used to fund the ongoing capital expenditure for the installation of a vacuum tank degasser and improvements to a continuous slab casting machine, as well as for other process improvements.

The tax-exempt senior unsecured bonds will be guaranteed by JSW and carry a tenor of around 30 years.
"The proposed bonds are backed by an unconditional, irrevocable corporate guarantee from JSW of up to 125% of the notes' face value, and will rank pari passu with the company's existing senior unsecured debt. As a result, they are
rated at the same level as JSW's senior unsecured debt rating," said Kaustubh Chaubal, a Moody's Senior Vice President.

JSW Steel, a part of JSW Group, is among the top 5 steel producing companies in India having global presence.