New Delhi, May 13 (IANS): In the first-ever such development, Crisil Ratings has assigned 'CRISIL A+/Stable' rating to the long-term credit facilities of Jindal Stainless Ltd (JSL).

Short-term credit facilities of JSL have been rated 'CRISIL A1'.

In January this year, JSL was accorded ratings of 'IND BBB+' and 'CARE BBB+' by India Ratings and Research and CARE Ratings, respectively, for long-term debt facilities.

The present rating is three notches higher than the earlier ratings.

Among the major determinants acknowledged by CRISIL for the ratings is the superior market position with a sizeable quantum of exports and significant improvements in overall operating efficiency, ensuring stable profitability.

Crisil has also taken into account a significant improvement of financial risk profile with consistent debt reduction over the past few years. The ratings also endorse efficient working capital management by the company.

JSL Managing Director Abhyuday Jindal said: "This rating is a testament to a strong business model at JSL and the inherent strengths of the group to continue delivering strong business performance. It acknowledges considerable deleveraging, as we have reduced the debt by around 35 per cent, and we intend to maintain our focus on robust balance sheet management. In this hour of need, we are also proud to contribute towards Atmanirbhar Bharat not only through manufacturing, but also by ramping up oxygen supplies to various parts of the country."

The rating also factored in a healthy business profile of the Jindal Stainless group, a dominant player in the domestic stainless steel industry in India.

Furthermore, Crisil has taken note of the strong consolidated business entity that will emerge after the merger of the JSL & Jindal Stainless (Hisar) Ltd, which is currently under process. This merged entity will have a large scale of operation with a high market share along with a diversified product basket.