Stable outlook for Vedanta

#S&P Global Ratings has raised its foreign currency long-term corporate credit rating on #Vedanta Resources PLC to ‘B+’ from ‘B’. The outlook is stable.

“At the same time, we raised our long-term issue ratings on the company’s issued or guaranteed notes and loans to ‘B+’ from ‘B’,” it said.

Vedanta Resources is a London-headquartered metals and oil holding company, with most of its operations in India.

“We raised the rating to reflect our expectation that Vedanta Resources’ operating performance will improve over the next 12-18 months owing to higher commodity prices and the company’s ramp-up of its aluminum operations,” said S&P Global Ratings credit analyst Mehul Sukkawala.

“We also anticipate that Vedanta Resources will continue to have adequate financial flexibility to manage its refinancing over the period,” he said.

Vedanta Resources continues to raise aluminum capacity at its second #Balco smelter in the Indian state of #Chhattisgarh. It has started ramping up the fifth potline at its Jharsuguda plant in the Indian state of Odisha. The 1,215 MW Captive Power Plant (CPP) of Vedanta at Jharsuguda is the largest of its kind in India.

In addition, the company has completed commissioning its power capacity and continues to increase iron-ore production.

“We believe the improved operating performance will also strengthen Vedanta Resources’ weak financial position,” Sukkawala said. fii-news.com