Vedanta Resources PLC - S&P Global Ratings’ Credit Research

Vedanta Resources PLC

Vedanta Resources PLC - S&P Global Ratings’ Credit Research
Vedanta Resources PLC
Published May 05, 2015
12 pages (4013 words) — Published May 05, 2015
Price US$ 500.00  |  Buy this Report Now

About This Report

  
Abstract:

Cost efficient zinc and oil businesses. Fair diversity of businesses. Scope to significantly improve scale of aluminum operations. High operational risks in Indian iron ore and Zambian copper businesses. Exposure to volatile and currently weak commodity prices. Evolving regulations and operating conditions in India. High debt because of debt-funded growth in the past. Positive free operating cash flows. Complex organizational structure adversely affecting cash flow fungibility and deleveraging. The negative outlook reflects the risk of a delay in improvement in Vedanta Resources PLC's operating performance because of challenges, particularly for the aluminum operations. This could result in the company's ratio of funds from operations (FFO) to debt on a proportionate basis not recovering to sustainably above 12% over the next

  
Brief Excerpt:

...Outlook: Negative The negative outlook reflects the risk of a delay in improvement in Vedanta Resources PLC's operating performance because of challenges, particularly for the aluminum operations. This could result in the company's ratio of funds from operations (FFO) to debt on a proportionate basis not recovering to sustainably above 12% over the next 24 months. It could also lower the covenant headroom and lead to refinancing pressure for the company's US$2 billion maturities in mid-2016....

  
Report Type:

Full Report

Ticker
VED@LN
Issuer
GICS
Diversified Metals & Mining (15104020)
Sector
Global Issuers
Country
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Vedanta Resources PLC" May 05, 2015. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Vedanta-Resources-PLC-1397103>
  
APA:
S&P Global Ratings’ Credit Research. (). Vedanta Resources PLC May 05, 2015. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Vedanta-Resources-PLC-1397103>
  
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