S&P moves Vedanta outlook to negative

S&P said it revised its outlook for Vedanta Resources Ltd. to negative from stable and affirmed its B- ratings on the issuer and its senior unsecured debt.

“Vedanta Resources has debt maturities of about $3 billion from now until August 2024. The company also has interest expenses that we estimate at $650 million. The $500 million that Vedanta Resources just raised by selling part of its stake in 64%-owned Vedanta Ltd., together with dividends and brand fees, should meet about half of the above debt-servicing needs,” the agency said in a press release.

“Vedanta Resources' demonstrated commitment to meeting debt obligations and track record in raising funds under various commodity and capital-market conditions support the current ratings despite the magnitude of the refinancing task,” S&P added.

However, the weaker outlook reflects the company’s limited liquidity and upcoming maturities, the agency said.

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