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Moody's lowers Vedanta bond
Moody's Investors Service said it affirmed Vedanta Resources plc's corporate family rating of Ba1, but lowered the senior unsecured bond rating to Ba3 from Ba2.
The outlook remains negative.
The downgrade follows the completion of the acquisition of a controlling stake in Cairn India Ltd., Moody's said.
While the acquisition should considerably enhance the group's EBITDA, Moody's said it is concerned with the sharply higher debt burden placed on the parent company.
In order to lift its stake from 28.5% to 58.5%, Vedanta drew $2.78 billion from its prearranged acquisition facilities, the agency said.
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