Metals & Mining News

S&P Global upgrades Vedanta Resources post maturity extensions

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MUMBAI – S&P Global Ratings has upgraded the long-term credit rating for Vedanta Resources to ‘CCC+’ from ‘SD’ earlier following the extension for three of its bond maturities. It has a ‘stable’ outlook for the company, indicating that there is a high possibility that the company will be able to meet its debt obligations over the next 12-15 months.

S&P Global has also raised its long-term issue ratings on the company’s outstanding bonds due January 2024, August 2024, and March 2025 to ‘CCC+’ from ‘D’. “Completion of the liability management exercise has alleviated refinancing risk for Vedanta Resources, although liquidity risks remain,” it said in a note on Monday.

Vedanta Resources has external debt maturities of $900 million in FY25 and FY26, and while S&P estimates a cash deficit in these periods, it sees the company being able to meet these deficits. “This is given the strength of the company’s businesses and track record of funding,” it said.

It however, emphasized that further deleveraging in the company is crucial in order to keep its debt servicing sustainable, especially since its access to funds has weakened.

“Its plan to monetize assets at Vedanta Ltd. could be an important driver of further deleveraging, and improved funding access,” S&P said.

On Monday, shares of India-listed Vedanta Ltd closed at 273.00 rupees on the NSE, up 0.2% from the previous close.

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