Moody's downgrades Vedanta

Moody's Investors Service said it downgraded Vedanta Resources Ltd.'s corporate family rating to B1 from Ba3. Moody's also downgraded the senior unsecured bonds issued by Vedanta and those issued by its wholly owned subsidiary, Vedanta Resources Finance II plc and guaranteed by Vedanta, to B3 from B2.

The outlook is stable.

"Today's downgrade of Vedanta's ratings was triggered by a sustained deterioration in the company's credit profile, and our expectation that its credit metrics will remain weak for the previous ratings," said Kaustubh Chaubal, a Moody's vice president and senior credit officer, in a press release.

Moody's forecasts that over the next 12 months, Vedanta's credit metrics will breach Moody's downgrade triggers for its previous Ba3 rating of debt/EBITDA leverage above 4, EBIT/interest below 2.5x and cash flow from operations less dividends/adjusted debt below 15%.

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