S&P changes Vedanta to stable

Standard & Poor's said it revised its outlook on Vedanta Resources plc to stable from negative.

At the same time, the agency affirmed its foreign currency long-term corporate credit rating on Vedanta at B and the issue rating on the company's various guaranteed bonds and loans at BB.

"We revised the outlook to reflect our view that the risks over Vedanta's ability to service its debt have reduced," S&P credit analyst Mehul Sukkawala said in a news release.

"The cash flows from Vedanta's oil and zinc businesses in India continue to be in line with our expectation and are a key financial strength for the company. We expect its other businesses to ramp up gradually and augment cash flow. This, combined with moderate capital expenditure, will help the company to continue registering positive free operating cash flow. In addition, Vedanta has refinanced more than US$4 billion in debt over the past 18 months. The company's debt maturities over the next two years appear manageable."

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