S&P upgrades Vedanta, raising its corporate family rating from ‘B-’ to ‘B’ with a stable outlook. This improvement highlights Vedanta Resources Limited’s (VRL) efforts to manage refinancing risks, enhance funding flexibility, and improve access to capital markets.
The credit rating agency noted that VRL, the parent company of Vedanta Ltd, met the minimum requirements for its consent solicitation exercise related to 2028 bonds. This milestone reflects financial stability and strategic progress.
Operational strength drives Vedanta’s upgrade
S&P stated that Vedanta’s stable outlook stems from solid operational performance. The company’s consistent cash generation and refinancing efforts played a critical role in the rating improvement. Over two years, Vedanta reduced its debt by USD 4.7 billion. Chairman Anil Agarwal emphasized this achievement in a shareholder letter, highlighting their commitment to financial discipline and growth.
Bond market success strengthens Vedanta
Vedanta’s success in the bond market contributed to the upgrade. In just four months, VRL raised USD 2 billion through bond issuances. This strategy reduced interest costs by 300 basis points and extended debt maturities, significantly strengthening its capital structure.
S&P expressed confidence in Vedanta’s financial discipline and operational consistency. The company’s actions ensure manageable refinancing risks while supporting long-term stability.
Vedanta’s growth strategy
With this upgrade, Vedanta showcases its financial resilience and strategic progress. S&P’s stable outlook reflects confidence in the company’s ability to generate cash and secure funding for future needs.
This milestone marks a significant step for Vedanta Resources Limited as it continues to improve its balance sheet and focus on sustainable growth.
