Global rating agency Fitch has downgraded Steel Authority of India’s (SAIL) credit profile to ‘negative’ from ‘stable’ stating subdued operating performance. Delays in execution of debt-funded expansion and modernisation programme, low profitability and muted demand have led to deterioration in the company's credit profile.
The agency rated SAIL’s credit profile as ‘BBB-’. Fitch expects SAIL’s performance to improve significantly over the next two years, supported by rising volumes and improving in cost efficiencies following the completion of the expansion and modernisation programme.
SAIL is India's largest steel producing company. The company is among the five Maharatnas of the country's Central Public Sector Enterprises. The company has five integrated steel plants, three special plants, and one subsidiary in different parts of the country.
