S&P Upgrades Vedanta Resources To B+ On Easing Refinancing Risk
S&P says Vedanta’s recent $1.1 billion bond issuance to address its 2026 and 2028 bond maturities has eased its liquidity and refinancing risks
(The Corner Office Journal) -- S&P Global Ratings upgraded Vedanta Resources Ltd.'s long-term issuer credit rating to B+ from B on its easing refinancing risk.
The rating agency also raised its long-term issue rating on the natural resources conglomerate’s guaranteed bonds to B from B-. In addition, S&P removed the ratings from CreditWatch. The outlook is Stable.
S&P said it also assigned its B long-term issue rating to the senior unsecured notes issued by the company’s subsidiary Vedanta Resources Finance II Plc.
Vedanta’s recent bond issuance of $1.1 billion to address its 2026 and 2028 bond maturities has eased its liquidity and refinancing risks, S&P said in a statement. The refinancing of $600 million 2026 bonds will plug the bulk of the funding gap of about $700 million that the company would likely have in April 2026, it added.
S&P said the Stable outlook on the long-term rating reflects its expectation that the group's operating performance will support generation of adequate dividends and brand fees to meet Vedanta’s upcoming debt maturities, including the residual $550 million private credit facility.
The outlook also reflects the rating agency’s view that the company will maintain leverage at around current levels, with a ratio of funds from operations to debt in excess of 20%, according to the statement.
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