Moody's upgrades Vedanta Resources corporate family rating

Moody's Ratings connected Wednesday said it has upgraded the firm household standing of Vedanta Resources Ltd (VRL) pursuing its palmy liability absorption exercises.

The standing bureau has upgraded the firm household standing of the institution from B3 to B2. Moody's has besides upgraded the standing connected the elder unsecured bonds issued by Vedanta Resources to B3 from Caa1.

"The standing upgrade follows VRL's palmy liabilities absorption exercises, with the institution raising $800 cardinal successful its 2nd enslaved issuance since September 2024," Nidhi Dhruv, Moody's Ratings Vice President and Senior Credit Officer said.

Moody's said that it has maintained the unchangeable outlook connected the entities.

"The enslaved issuances successful speedy succession solidify Vedanta's entree to superior markets arsenic good arsenic increasing capitalist assurance successful the company," Dhruv said.

UK-based Vedanta Resources, the genitor of mining large Vedanta, connected Tuesday said it has raised $800 cardinal from planetary investors done a caller enslaved issue. The proceeds volition beryllium utilized to prepay the company's outstanding indebtedness owed successful 2028.

This caller contented comes arsenic Vedanta has been gradually deleveraging its equilibrium sheet, improving its superior structure, and lowering its fiscal costs by tapping enslaved markets arsenic portion of its liquidity absorption exercise.

Vedanta Resources has reduced its nett indebtedness by $1 cardinal successful the archetypal fractional and refinanced bonds of implicit $1.2 cardinal successful the existent fiscal year.

In September, Vedanta raised $900 million, the company's archetypal dollar enslaved contented successful much than 2 years, to prepay existing bonds.

The $900-million rise was astatine a coupon complaint of 10.875 per cent successful a five-year US dollar-denominated bond. Following this, VRF exercised a pat enactment connected its September enslaved issuance, raising a further $300 million.