...SINGAPORE (S&P Global Ratings) April 12, 2017--S&P Global Ratings said today that its rating on Vedanta Resources PLC (foreign currency B+/Stable/--) is not immediately affected by the merger of the company's subsidiary Vedanta Ltd. with Cairn India Ltd. In our view, the merger will improve the cash flow fungibility within Vedanta Ltd. by simplifying the group structure to some extent. However, it will not change Vedanta Resources' financial metrics nor will it materially improve cash flow fungibility between Vedanta Ltd. and the holding company Vedanta Resources. Vedanta Ltd. will benefit from improved cash flow fungibility, given its high debt and significant short-term borrowings. Vedanta Ltd. would get access to about US$4 billion of cash at Cairn India and its free operating cash flows, which we estimate to be about US$700 million annually. This should support Vedanta Ltd.'s ability to service its debt of about US$9 billion, including short-term debt, current maturities of long-term...
