The Business Bytes
Mumbai, December 5, 2024 (TBB Bureau): Vedanta Ltd, a leading global diversified natural resources company, announced on Tuesday that Crisil Ratings Ltd has upgraded its rating on the company’s long-term bank facilities and debt instruments. The revised rating, upgraded to “AA” from “AA-”, underscores Vedanta’s improved capital structure, enhanced financial flexibility, and robust volume growth.
Crisil’s rating rationale highlights a significant improvement in Vedanta’s consolidated operating profitability (Earnings Before Interest, Tax, Depreciation and Amortisation or EBITDA), driven by higher operational efficiencies and a strategic reduction in debt. The company’s leverage now falls below the thresholds required for its upgraded rating. This marks the second major credit rating upgrade for Vedanta in the last three months, following ICRA’s upgrade in September 2024.
In September, ICRA raised Vedanta Ltd’s long-term credit rating to “AA” from “AA-”, citing a strengthened credit profile. Vedanta Resources, the UK-based parent company of India’s Vedanta Ltd, has also bolstered its financial standing by raising USD 800 million from global investors through a new bond issue. The proceeds have been earmarked to prepay outstanding debt maturing in 2028. Additionally, Vedanta raised USD 900 million earlier in September, marking its first dollar bond issuance in over two years, to refinance existing bonds.
Vedanta Ltd operates across multiple sectors, including oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium, with a significant presence in India and other countries. The rating upgrades reflect the company’s commitment to financial prudence and operational excellence, positioning it as a stronger contender in the global natural resources market.
