India Ratings and Research (Ind-Ra) has affirmed Indian state-run steelmaker Steel Authority of India’s (SAIL) long-term issuer rating as ‘Ind-AA” denoting a stable outlook, according to a statement of the rating agency on Thursday, September 8.
According to a ‘rating rationale’ report of Ind-Ra, it takes a consolidated view of SAIL and its subsidiaries, SAIL Refractory Company Limited, a wholly owned subsidiary, and Chhattisgarh Mega Steel Limited, and also factored in the availability of support to the company from the government of India, as majority owner.
The affirmation reflects SAIL’s continued strong business profile and accelerated deleveraging in fiscal years 2020-21 and 2021-22, resulting in the sustained improvement in company’s operations and a significant increase in earnings before interest, depreciation, tax and amortisation (EBITA), Ind-Ra said in the report.