Bulletin: Vedanta Resources' Near-Term Liquidity Risk Is Easing

This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) July 14, 2022--Liquidity stress has decreased for Vedanta Resources Ltd. The India-based company has addressed a large part of its debt maturities for fiscal 2023 (year ending March 2023). While Vedanta Resources (B-/Stable/--) still has some funds to raise, we believe it has adequate cash held at subsidiary Vedanta Ltd. and will benefit from established banking relationships. That said, Vedanta Resources' weakened access to capital markets and persistent refinancing needs constrain the rating. From needing to refinance about US$3 billion at the start of the fiscal year, Vedanta Resources' debt maturities for the rest of the fiscal year are now about US$1.3 billion. We assume the company will

...SINGAPORE (S&P Global Ratings) July 14, 2022--Liquidity stress has decreased for Vedanta Resources Ltd. The India-based company has addressed a large part of its debt maturities for fiscal 2023 (year ending March 2023). While Vedanta Resources (B-/Stable/--) still has some funds to raise, we believe it has adequate cash held at subsidiary Vedanta Ltd. and will benefit from established banking relationships. That said, Vedanta Resources' weakened access to capital markets and persistent refinancing needs constrain the rating. From needing to refinance about US$3 billion at the start of the fiscal year, Vedanta Resources' debt maturities for the rest of the fiscal year are now about US$1.3 billion. We assume the company will meet about half of the remaining amount due in fiscal 2023 further dividends from Vedanta Ltd., and the rest will be refinanced. We understand Vedanta Resources is looking at raising additional funding from Indian banks, similar to the US$700 million it raised in May...

Bulletin