Bulletin: Vedanta Resources' Semiconductor Plans Won't Chip Away At Liquidity

This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) Sept. 19, 2022--Vedanta Resources Ltd.'s credit profile will unlikely be weighed down by the group's semiconductor plans. This is because the company has reiterated that the US$20 billion related investment will be carried out outside of Vedanta Resources (B-/Stable/--). The business will be undertaken in a separate entity under Vedanta Resources' holding company Volcan Investments Ltd. Any potential credit impact of the planned investments in the semiconductor business will depend on the details of the funding plan, which have yet to emerge. For example, we could watch out for any change in Vedanta Resources' dividend policy, to support servicing of any debt at Volcan for the semiconductor business.

...SINGAPORE (S&P Global Ratings) Sept. 19, 2022--Vedanta Resources Ltd.'s credit profile will unlikely be weighed down by the group's semiconductor plans. This is because the company has reiterated that the US$20 billion related investment will be carried out outside of Vedanta Resources (B-/Stable/--). The business will be undertaken in a separate entity under Vedanta Resources' holding company Volcan Investments Ltd. Any potential credit impact of the planned investments in the semiconductor business will depend on the details of the funding plan, which have yet to emerge. For example, we could watch out for any change in Vedanta Resources' dividend policy, to support servicing of any debt at Volcan for the semiconductor business. We believe Vedanta Resources will prudently manage its investments so that it does not put debt servicing at risk. The group's investments will also likely happen over a long period of time. Our rating on Vedanta Resources does not assume any material exposure...

Bulletin