S&P affirms Vedanta Resources

Standard & Poor's said it affirmed its BB foreign-currency corporate credit and senior unsecured debt ratings on Vedanta Resources plc's after news of its successful acquisition of a 51% stake in Sesa Goa Ltd.

The outlook is negative.

While this acquisition will sharply increase Vedanta's gross debt, S&P said its adverse impact will be mitigated by the improvement in the company's financial profile and the relative adequacy of its credit protection ratios for its rating level.

The agency said the negative outlook captures the uncertainties and the risk of increased leverage associated with the acquisition.

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