Moody's lifts JSW Steel view to positive

Moody's Investors Service said it changed the outlook on JSW Steel Ltd.'s ratings to positive from stable.

Moody's also said it affirmed JSW's Ba2 corporate family rating and the Ba2 rating on the company's senior unsecured notes.

The positive outlook reflects the improving trajectory of JSW's credit metrics principally due to its competitive and efficient production costs, solid domestic demand conditions and an expectation for a supportive ongoing price environment, the agency explained.

The positive outlook also considers an expectation that the company will remain selective in any acquisitions, funding them with a prudent mix of debt and equity, Moody's said.

The agency said it expect that any such acquisitions will be earnings accretive and help in rapid deleveraging, leading to a temporary spike in adjusted debt-to-EBITDA ratio.

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