More Stories

Informist, Wednesday, Nov. 27, 2024

 

Please click here to read all liners published on this story

--Moody's upgrades Vedanta Resources corporate family rtg to 'B2' from 'B3' 
--Moody's ups Vedanta Resources senior unsecured bonds rtg to B3 from Caa1 
--Moody's maintains stable outlook on Vedanta Resources, wholly-owned arm 
--Moody's: Vedanta Resources rtg upgrade on successful liability management 
--Moody's: May upgrade Vedanta Resources rtg if fincl metrics remain strong 

 

MUMBAI – Moody's Ratings has upgraded Vedanta Resources Ltd.'s corporate family rating to 'B2' from 'B3'. The rating agency has also upgraded the company's and its wholly owned subsidiary Vedanta Resources Finance II Plc's senior unsecured bonds to 'B3' from 'Caa1'. The bonds issued by Vedanta Resources Finance II is guaranteed by Vedanta Resources. The agency has maintained a stable outlook on both the entities.

 

"The rating upgrade follows Vedanta Resources's successful liabilities management exercises, with the company raising $800 million in its second bond issuance since September 2024," Nidhi Dhruv, vice-president and senior credit officer, Moody's Ratings said.

 

The ratings upgrade of Vedanta Resources and its wholly owned subsidiary has been on the back of successful liability management. Vedanta Resources' recent liability management initiative consisted of debt reduction and refinancing using proceeds from newly issued bonds, dividends received from subsidiaries, and proceeds from sale of stakes in subsidiaries. These measures have led to a significant reduction in debt and extension of the debt maturity profile at the holding company, Moody's said. As of September, debt at Vendanta Resources' holding company level has reduced to $4.8 billion from $9.1 billion as of March 2022.

 

Vedanta Resources ratings could be upgraded if its financial metrics remain strong, Moody's said. The ratings will be upgraded to 'B1' if the leverage stays below 4.5 times, interest coverage ratio stays above 2 on a sustained basis, reduction in gross debt, and a proactive approach towards refinancing and liquidity management, Moody's said. A downgrade is also possible for the company if the commodity prices soften substantially and reduce Vedanta Resources' earnings and free cash flow generation.

 

Vedanta Ltd., a subsidiary of Vedanta Resources, reported a consolidated net profit of INR 43.52 billion for the September quarter on consolidated revenue of INR 376.34 billion. Wednesday, shares of the company closed at INR 445.80 on the National Stock Exchange, down 0.6%.  End

 

US$1 = INR 84.45

 

Reported by Akshay V. Johnson

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.