Research Update: Vedanta Resources 'B-' Ratings Affirmed And Removed From CreditWatch; Outlook Negative On Tight Liquidity

Vedanta Resources Ltd. has failed to privatize its 50.1%-owned subsidiary Vedanta Ltd., raising risks over the company's ability to sustainably service its debt beyond the next 12 months. On Oct. 20, 2020, S&P Global Ratings affirmed its 'B-' long-term issuer credit rating on Vedanta Resources and the 'B-' long-term issue rating on the senior unsecured bonds the India-focused commodities conglomerate issued or guaranteed. We removed the ratings from CreditWatch, where we had placed them with developing implications on Aug. 11, 2020, ahead of the company's proposed privatization of Vedanta Ltd. At the same time, we withdrew the preliminary 'B' rating assigned to the US$1.4 billion bond issued by Vedanta Holdings Mauritius II Ltd. and guaranteed by Vedanta Resources. The bond

...- Vedanta Resources Ltd. has failed to privatize its 50.1%-owned subsidiary Vedanta Ltd., raising risks over the company's ability to sustainably service its debt beyond the next 12 months. - On Oct. 20, 2020, S&P Global Ratings affirmed its 'B-' long-term issuer credit rating on Vedanta Resources and the 'B-' long-term issue rating on the senior unsecured bonds the India-focused commodities conglomerate issued or guaranteed. We removed the ratings from CreditWatch, where we had placed them with developing implications on Aug. 11, 2020, ahead of the company's proposed privatization of Vedanta Ltd. - At the same time, we withdrew the preliminary 'B' rating assigned to the US$1.4 billion bond issued by Vedanta Holdings Mauritius II Ltd. and guaranteed by Vedanta Resources. The bond has been redeemed in accordance with terms upon the failure of the privatization. - The negative outlook indicates that we could downgrade Vedanta Resources if the company is unable to lower refinancing risk by...

Research Update