...SINGAPORE (S&P Global Ratings) May 31, 2018--S&P Global Ratings said today that the government's closure of a south Indian copper smelter of Vedanta Resources PLC (B+/Stable/--) is marginally negative for the company. "The cash flows from Vedanta's Indian copper smelting operations were marginal compared with gross cash flows, but they provided cash flow diversity," said S&P Global Ratings credit analyst Vishal Kulkarni. At the same time, the diversified natural resources company faces a number of operational headwinds in India, including domestic coal-supply constraints and potentially higher taxes on crude oil producers. These issues could test Vedanta's cash flow targets, if realized. Despite such headwinds, we expect the company's financial ratios will continue to improve. Regulatory authorities recently ordered Vedanta to close its copper smelter in southern India. While the company could pursue legal proceedings to restart existing smelter operations, this would likely be a lengthy...
