S&P rates Vedanta loan BB

Standard & Poor's said it assigned a BB rating to a $1.2 billion senior secured term loan facility (term loan A) guaranteed by Vedanta Resources plc.

Twin Star Mauritius Holdings Ltd., a wholly owned subsidiary of Vedanta, issued the loan.

Vedanta used the proceeds from the loan to refinance the debt it had borrowed for the acquisition of Cairn India Ltd., S&P said.

Vedanta's fair business risk profile reflects the company's good business diversity, the agency said.

Vedanta has a good cost position in the zinc and oil businesses, S&P added.

However, the risks related to the company's India operations remain high and its debt-funded growth and financial strategy places much of its debt, but very limited cash, at the holding company, the agency said.

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