CARE Ratings has improved the short and long-term bank facilities of Jindal Stainless (Hisar) (JSHL). The long-term bank facilities has been upgraded to ‘CARE A+’, while the short-term bank facilities were upgraded to ‘CARE A1+’. The company had previously received upgrades to its short and long-term bank facilities in January when they were assigned ‘CARE A-’ and ‘CARE A2+’, respectively.

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The rating upgrades were based on exemplary operational and financial performance from the company in FY21. Factors that were cited in the rating report include — higher realisations and pick up in sales volumes, and emphasis on value added products.

Managing Director of JSHL Abhyuday Jindal said regarding the upgrade, "Despite initial and recurrent challenges posed by the pandemic, JSHL has adapted with agility and efficiency. This rating upgrade is a testimony to our operational excellence and internationally acclaimed product mix. We’re already strengthening our Specialty Products Division (SPD) at Hisar which will further give us a competitive edge in domestic and exports markets. JSHL has also been at the forefront of supplying Liquid Medical Oxygen to hospitals and oxygen filling centres in North India."

The rating also highlighted the upcoming merger of JSHL into Jindal Stainless, and its positive effect on the rating of the company.

"The merger of JSL and JSHL will create one of the largest stainless-steel entities with a total capacity of 1.90 MTPA. Subsequent to the merger, the combined entity is expected to have more diversified operations, wider presence both domestically as well as globally, higher bargaining power with the suppliers and will become one of the top ten global stainless-steel manufacturers," stated the CARE Ratings report.

The full report can be accessed here.