S&P hikes Vedanta

S&P said it raised Vedanta Resources Ltd.’s issuer rating to CCC+ from SD, selective default and the ratings on its bonds due January 2024, August 2024 and March 2025 to CCC+ from D. The agency also raised Vedanta’s April 2026 bond, which was not part of the recent liability management, to CCC+ from CCC. S&P concurrently removed the rating from CreditWatch where it had placed it with developing implications on Dec. 14.

“Completion of the liability management exercise has alleviated refinancing risk for Vedanta Resources, although liquidity risks remain. The company has annual external debt maturities of about $900 million at the holding-company level in fiscal years 2025 and 2026 (year-end March 31). This is more manageable than its debt maturities of $2.5 billion-$3 billion annually in fiscal years 2023-2024,” S&P said in a press release.

However, the agency warned liquidity remains anemic, and it forecasts a cash flow deficit of about $500 million each in fiscal 2025 and the first half of fiscal 2026.

The outlook is stable.

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