Moody's: Vedanta unchanged

Moody's Investors Service said that the announcement by Vedanta Resources plc to acquire the zinc-producing assets from Anglo American for $1.338 billion has no immediate impact on Vedanta's ratings or outlook.

Vedanta has a Ba1 corporate family rating and a Ba2 senior unsecured rating, both with stable outlook, the agency said.

According to Moody's, the acquisition of Anglo American's zinc assets will add about 343,000 tons of zinc and 55,000 tons of lead production to Vedanta, with operations centered largely in South Africa, Namibia and Ireland.

"The acquisition is intended to be funded from existing cash of $2.6 billion at Vedanta's subsidiary, Hindustan Zinc Ltd. subject to necessary approvals, and we do not expect it to have an immediate impact on Vedanta's current leverage," said Philipp Lotter, a Moody's senior vice president.

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