Fitch Ratings has revised Vedanta Resources Limited’s outlook to Positive from Stable while affirming its Long-Term Issuer Default Rating (IDR) at ‘B+’. The move reflects expectations of reduced leverage and improved financial resilience, signaling stronger investor confidence and potential rating upgrades if performance sustains over the medium term.
In a significant development for India’s metals and mining giant, Fitch Ratings has upgraded the outlook on Vedanta Resources Limited (VRL) to Positive while affirming its Issuer Default Rating (IDR) at ‘B+’. The revision underscores Fitch’s confidence in Vedanta’s debt management and operational performance.
Key Highlights:
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- Outlook Upgrade: Shifted from Stable to Positive, indicating potential for future rating improvements.
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- IDR Affirmed: Long-Term Foreign-Currency IDR remains at ‘B+’, reflecting current creditworthiness.
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- Debt Metrics: Fitch estimates VRL’s proportionately consolidated EBITDA net leverage may reduce to around 3.2x or lower, sustained over time.
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- Bond Ratings: Senior unsecured ratings and US dollar bonds issued by Vedanta Resources Finance II Plc affirmed at ‘B+’ with a Recovery Rating of ‘RR4’.
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- Investor Confidence: The outlook revision is expected to enhance Vedanta’s access to capital markets and improve sentiment among global investors.
This announcement highlights Vedanta’s ongoing efforts in deleveraging, operational efficiency, and cash flow stability, positioning the company for stronger financial resilience in the coming years.
Sources: Fitch Ratings, ScanX News