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Bond Market News
Vedanta Upgraded to B+ by Fitch
January 21, 2025
Vedanta Resources was upgraded by two notches to B+ from B- by Fitch. The upgrade reflects a significant reduction in Vedanta’s refinancing risks, after it raised $1.1bn in new bonds and received bank commitments for loans worth $350mn this month. Once the proceeds are used to refinance Vedanta’s existing debt, it will have a long-dated and well-spread maturity profile, with the next large bond maturity ($1.2bn) more than four years away in September 2029. Fitch believes Vedanta has adequate liquidity to cover approximately $2.6bn in debt and interest obligations through FY2027, with sufficient cash, brand fees, and dividend income. The conglomerate’s financial structure has improved, with a reduction in debt from $9bn in FY2022 to about $5bn lately. The management plans to further reduce this to $3bn by FY2027, supported by stronger cashflows from subsidiaries. Last week, Moody’s had upgraded Vedanta to B1, citing similar reasons.
Vedanta’s bonds traded stable with its 10.25% 2028s at 102.6, yielding 9.31%.
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