Vedanta Resources Rating Upgraded by S&P Global
By Rediff Money Desk, New Delhi Dec 20, 2024 20:25
S&P Global upgraded Vedanta Resources' rating to 'B' from 'B-', citing improved funding flexibility and strong operations. The upgrade follows successful debt refinancing and deleveraging efforts.

Photograph: Danish Siddiqui/Reuters
New Delhi, Dec 20 (PTI) Vedanta Resources Limited (VRL), the parent firm of Mumbai-based mining conglomerate Vedanta Ltd, has received a rating upgrade from S&P Global Ratings.
The agency upgraded VRL's corporate family rating from 'B-' to 'B'.
With this, VRL's rating by S&P has gone up by five notches from 'CC' in December last year.
"We raised our issuer credit rating on Vedanta Resources Ltd. to 'B' from 'B-' and raised our issue ratings on the company's guaranteed bonds to 'B-' from 'CCC+'," the rating agency said.
S&P said in its report that the upgrade comes after VRL obtained the minimum acceptances needed to close its consent solicitation exercise for 2028 bonds.
"The stable outlook reflects our expectation that refinancing risks will be more manageable after the transaction given a newfound funding flexibility and improved capital market access," the agency said in its report.
"The stable outlook also reflects the company's sound underlying operations, which should support internal cash generation and refinancing efforts," it added.
The company's focus on deleveraging and strengthening its balance sheet also translated into upgrades by other major rating agencies.
VRL's focus on deleveraging has reduced debt by USD 4.7 billion in the past two years, Chairman Anil Agarwal said in a letter to shareholders in November this year. The upgrades also reflect Vedanta's ability to consistently tap bond markets.
In the past four months, VRL has raised USD 2 billion through bond issuances, achieving 300 basis point interest cost reduction and pushing out its debt maturities considerably, which has helped strengthen the company's capital structure considerably.
The agency upgraded VRL's corporate family rating from 'B-' to 'B'.
With this, VRL's rating by S&P has gone up by five notches from 'CC' in December last year.
"We raised our issuer credit rating on Vedanta Resources Ltd. to 'B' from 'B-' and raised our issue ratings on the company's guaranteed bonds to 'B-' from 'CCC+'," the rating agency said.
S&P said in its report that the upgrade comes after VRL obtained the minimum acceptances needed to close its consent solicitation exercise for 2028 bonds.
"The stable outlook reflects our expectation that refinancing risks will be more manageable after the transaction given a newfound funding flexibility and improved capital market access," the agency said in its report.
"The stable outlook also reflects the company's sound underlying operations, which should support internal cash generation and refinancing efforts," it added.
The company's focus on deleveraging and strengthening its balance sheet also translated into upgrades by other major rating agencies.
VRL's focus on deleveraging has reduced debt by USD 4.7 billion in the past two years, Chairman Anil Agarwal said in a letter to shareholders in November this year. The upgrades also reflect Vedanta's ability to consistently tap bond markets.
In the past four months, VRL has raised USD 2 billion through bond issuances, achieving 300 basis point interest cost reduction and pushing out its debt maturities considerably, which has helped strengthen the company's capital structure considerably.
Source: PTI
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 8.82 ( -3.29)
- 32307632
- Quadrant Televenture
- 0.50 ( -3.85)
- 22650423
- Srestha Finvest
- 0.66 (+ 1.54)
- 16236668
- Murae Organisor
- 1.94 (+ 4.86)
- 14718049
- Spright Agro
- 7.37 (+ 4.99)
- 14440430
MORE NEWS

Telangana Hikes Beer Price 15%: Brewers...
Telangana government raises beer prices by 15%, welcomed by Brewers Association. BAI...

US Tariffs on Steel Worry Indian Stainless...
The Indian stainless steel industry is concerned about US tariffs, which they say will...

Oil Retailers Select PACS for Petrol Outlets -...
Cooperation Minister Amit Shah announced that 26 PACS have been chosen to set up retail...