Fitch: Vedanta on watch

Fitch Ratings said it placed Vedanta Resources plc's long-term issuer default rating of BB+ on Rating Watch negative, along with its senior unsecured rating of BB.

The ratings on negative watch also include the BB ratings on the company's $1.25 billion senior unsecured bonds, $1.65 billion senior unsecured bonds, $1.7 billion senior unsecured bonds and $180 million senior unsecured loan facility.

The negative watch also applies to the BB rating on the $150 million unsecured loan facility issued by Twinstar Holdings Ltd., Mauritius and backed by an unconditional, irrevocable guarantee of Vedanta, along with the BB rating on the $170 million senior unsecured loan facility issued by Valliant (Jersey) Ltd. and backed by an unconditional, irrevocable guarantee of Vedanta.

Also placed on negative watch includes the BB rating on the $180 million senior unsecured loan facility issued by Vedanta Finance (Jersey) Ltd. and backed by an unconditional, irrevocable guarantee of Vedanta.

The ratings were placed on negative watch because Fitch said it is changing its approach to using metrics based on a proportional consolidated financial profile given the significant minority shareholders at the key operating entities in the group.

The agency said it previously used metrics based on the consolidated financial profile of the group.

The ratings may be downgraded by a maximum of one notch following the review, Fitch said.

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