VIS revises outlook of ISL to Stable as cash flow indicators improve

March 16, 2021 (MLN): VIS Credit Rating Company Limited has maintained the entity ratings of ‘A+/A-1’ (Single A Plus/A-One) assigned to International Steels Limited (ISL).

The long-term rating signifies good credit quality with adequate protection factors. The risk may vary slightly from time to time because of economic conditions.

 Short term rating of ‘A-1’ depicts high certainty of timely payment where liquidity factors are excellent and supported by good fundamental protection and minor risk factors. The previous rating action was announced on October 20, 2020.

ISL was placed on a ‘Rating Watch - Negative’ in October 2020 on account of the cash flow coverage indicators sliding below the threshold for the assigned rating. However, the increased steel demand witnessed in H1’FY21 has translated into a significant improvement in turnover and profitability, while debt has been notably reduced, translating in much better cash flow coverage indicators. In view of the same, the outlook has been revised to ‘Stable’.

VIS