Moody’s ups Vedanta to B1, debt to B3

Moody's Investors Service said it upgraded Vedanta Resources plc's corporate family rating to B1 from B2 and its senior unsecured rating to B3 from Caa1.

The outlook is stable.

"The upgrade of Vedanta's ratings reflects: (1) Moody's expectation of the relative improvement in commodity prices and the resultant increase in the company's earnings and cash flow; (2) the company's progress in reducing absolute debt levels; and (3) the high probability of a successful merger of Vedanta Ltd. (unrated) and Cairn India Ltd. (CIL, unrated), improving group liquidity and enhanced financial flexibility, which in Moody's view, could result in debt reduction, further improving leverage," Moody's vice president and senior analyst Kaustubh Chaubal said in a news release.

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