Fitch rates Vedanta bonds BB

Fitch Ratings said it assigned Vedanta Resources plc's $1.7 billion senior unsecured bonds a final rating of BB.

The bonds comprise two tranches: $1.2 billion 6% bonds due January 2019 and $500 million 7 1/8% bonds due May 2023.

Fitch said the rating reflects the impact of regulatory risks in the metals & mining industry, particularly in India, on Vedanta's businesses.

The ban on iron ore mining operations during the 2013 fiscal year impacted Vedanta's iron ore mines in the state of Goa, its largest mines, causing EBITDA from iron ore mining business to decline to $84 million from $721 million in fiscal year 2012.

Consequently the company's consolidated EBITDA fell to $4.9 billion, the agency said.

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