The credit rating agency, ICRA, has upgraded its rating from BBB(-) with "Stable" outlook to BBB(+) with "Stable" outlook on the Long Term Bank Facilities and Non-Convertible Debentures and from "A3" to "A2" for short term facilities of Jindal Steel and Power.

The ratings are upgraded to [ICRA] BBB (+) with Stable outlook for long term facilities and Non-Convertible Debentures and [ICRA] A2 for short term facilities.

The Stable outlook on JSPL's rating reflects ICRA's expectation that a continuing ramp up in the company’s domestic steel volumes, together with access to raw material at favourable prices will facilitate a healthy performance in the near term.

As a result, ICRA expects the consolidated coverage metrics to remain comfortable despite sizeable scheduled repayment obligations in the international subsidiaries, which do not have commensurate cash flows from the underlying assets. Together with our expectation of the company not undertaking any major capital expenditure (capex), this is likely to sustain the improving trajectory of credit metrics, the rating agency said.

Shares of the company was last traded at Rs 259.75, up Rs 6.75, or 2.67%.  The total volume of shares traded  was 706,000 at the BSE (Tuesday).