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Vedanta Upgraded to BB- by Fitch
April 6, 2026
Vedanta Resources Limited (VRL) was upgraded by a notch to BB- from B+ by Fitch. The upgrade was driven by expectations of improving EBITDA generation to $6.5–7bn over FY2026–29, up from $5.3bn in FY2025. This improvement is underpinned by higher aluminium, zinc, and silver prices, healthy commodity demand, and an improving cost structure through greater backward integration and renewable energy use. Vedanta’s proportionately consolidated net leverage is expected to stay below 3x through FY2029, supported by management’s commitment to deleveraging and improved financial discipline, including proactive refinancing and smoother debt maturities. Brand fees and dividends from operating subsidiaries are projected to cover up to $1bn in annual holding company debt service. While the Middle East conflict poses some cost pressures, Fitch considers the impact manageable given Vedanta’s limited revenue and input sourcing exposure to the region. The rating is further supported by Vedanta’s large, diversified, and low-cost market positions across zinc, aluminium, and oil and gas. The proposed demerger of Indian subsisiary Vedanta Limited into five entities is expected to be broadly credit-neutral.
Vedanta’s dollar bonds traded marginally higher with its 11.25% 2031s up by 0.1 points at 107.9, yielding 9.2%.
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