CRISIL has downgraded its ratings on Jindal Steel and Power (JSPL)'s long-term bank loan facilities and non-convertible debentures to 'AA-/Stable' from 'AA/Stable'; the rating on the short-term bank facilities and commercial paper facility has been reaffirmed at 'A1+'. CRISIL believes that the JSPL group will continue to benefit from its diverse revenue streams.

Deallocation of coal blocks will, however, result in moderation in its profitability and preclude significant improvement in its financial risk profile over the medium term. The outlook may be revised to 'Positive' in case of faster correction in the financial risk profile over the medium term, because of profitability improvement from regaining raw material integration or reduction in debt through asset monetisation or equity infusion.

Conversely, the outlook may be revised to 'Negative' if the group undertakes a considerably large debt-funded capex programme or acquisition, leading to considerable increase in gearing, or in case of substantial decline in JSPL's operating profitability.

Shares of the company declined Rs 6.55, or 3.56%, to settle at Rs 177.40. The total volume of shares traded was 641,968 at the BSE (Monday).