EM ASIA CREDIT: India: Steelmaker ratings headroom to shrink

Mar-18 05:51By: Eric Sharper
TATAIN+ 2

 

"*Fitch Ratings: Indian Steelmakers' Rating Headroom Narrows amid Cheap Imports, Tariff Risks" - BBG

  • In summary, Fitch highlights that U.S. Tariffs on China steel products will lead to more of the product being available, and more cheaply, in Asia.
  • This will negatively impact Indian domestics steel makers, including JSW Steel and Tata Steel.
  • The agency expects both JSW Steel and Tata Steel to breach their rating thresholds for leverage of 3.7x and 3.0x respectively in FY'25 with limited headroom for FY'26 .
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