S&P Global Ratings downgrades Vedanta Resources amid bond maturity extension
BENGALURU - S&P Global Ratings on Thursday downgraded the rating of Vedanta Resources, parent of Indian miner Vedanta, citing concerns about extension of maturities of some of its bonds.
Vedanta Resources late Wednesday said it raised $1.25-billion from financial institutions for refinancing, including a new credit facility.
The company also said it started consent solicitations with existing bondholders to extend debt maturity profile, allowing for extension of maturities, amendments to bond terms and seeking certain waivers.
The agency's action on the UK-based company's bonds is spurred by the high "likelihood of a conventional default."
"This is because of the company's large upcoming debt maturities and weakened access to both internal cash flow and external financing. The company has about $4.5-billion in debt maturities through March 2025," S&P Global said.
S&P Global Ratings reduced Vedanta Resources' rating to "CC" from "CCC."
Rating agencies continued to downgrade the firm throughout last year, citing concerns about the group's $6.4 billion outstanding debt.
S&P had downgraded Vedanta Resources to "CCC" from "B-" in late September, shortly after Moody's Investors Service lowered its rating on the miner's unsecured bonds and corporate family rating (CFR).
Anil Agarwal, Vedanta's founder and chairman, has made several bids to trim the group's debt, including an unsuccessful attempt to take the company private in 2020 and a deal contested by the Indian government for the company's unit Hindustan Zinc buying some of the debt-laden firm's zinc assets.
Vedanta in September also launched a sweeping overhaul, carving up the metals-to-oil conglomerate into six separate businesses.
Comments
Projects
Latest Multimedia
Latest News
Showroom
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
