Moody's snips Vedanta Resources

Moody's Investors Service said it downgraded Vedanta Resources Ltd.’s corporate family rating to Caa2 from Caa1 The agency also lowered to Caa3 from Caa2 its rating on its senior unsecured bonds and those issued by VRL's wholly owned subsidiary, Vedanta Resources Finance II plc, which are guaranteed by VRL.

"The downgrade reflects elevated risk of debt restructuring over the next few months because VRL has not made any meaningful progress on refinancing its upcoming debt maturities, in particular the $1 billion bonds maturing each in January 2024 and August 2024," said Kaustubh Chaubal, a Moody's senior vice president and lead analyst on VRL, in a press release.

The agency noted that in August, VRL sold a 4.3% stake in key subsidiary Vedanta Ltd. for around $500 million to help with cash needs.

The outlook remains negative for both companies.

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