Research Update: Vedanta Resources Downgraded To 'SD' On Completion Of Liability Management Transaction

Vedanta Resources Ltd. has completed a liability management transaction to extend the maturities of three of its U.S. dollar-denominated bonds. We regard the transaction as distressed under our criteria. On Jan. 12, 2024, we lowered our long-term issuer credit rating on Vedanta Resources to 'SD' (selective default) from 'CC'. We also lowered the issue ratings on the company's bonds due January 2024, August 2024, and March 2025 to 'D' from 'CC'. The issue rating on the U.K.- and India-based miner's April 2026 bond (which was not part of the liability management transaction) remains 'CCC' and on CreditWatch with developing implications. We expect to raise the issuer and issue ratings to the mid-to-high 'CCC' category in the next few days. We

...- Vedanta Resources Ltd. has completed a liability management transaction to extend the maturities of three of its U.S. dollar-denominated bonds. We regard the transaction as distressed under our criteria. - On Jan. 12, 2024, we lowered our long-term issuer credit rating on Vedanta Resources to '##' (selective default) from '##'. We also lowered the issue ratings on the company's bonds due January 2024, August 2024, and March 2025 to 'D' from '##'. - The issue rating on the U.K.- and India-based miner's April 2026 bond (which was not part of the liability management transaction) remains '###' and on CreditWatch with developing implications. - We expect to raise the issuer and issue ratings to the mid-to-high '###' category in the next few days....

Research Update