Moody's: Vedanta view to stable

Moody's Investors Service said it changed Vedanta Resources plc's outlook to stable from negative and affirmed its corporate family rating at Ba1 and senior unsecured ratings at Ba3.

Since August 2010, Vedanta's outlook has carried a negative bias in terms of its outlook or being under review for potential downgrade. The latter condition arose when Vedanta embarked on the debt-funded acquisition of Cairn India (unrated) and again when the company was slow to prearrange funds for the repayment of a convertible bond in April 2013. Notwithstanding these events, the underlying operations have continued to make progress and the presence of Cairn India is a major factor in stabilizing the overall business.

Vedanta has taken steps to reinforce its credit profile, the agency said. It has simplified its group structure through the formation of Sesa Sterlite Ltd. (unrated) in August 2013, improved its liquidity profile, including a more proactive approach to refinancing and the establishment of a standby credit facility at the parent, while facing an adverse commodity price environment and the idling of key assets in its iron ore and aluminum businesses.

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