Vedanta Secures Strong Financial Outlook with Double Credit Upgrade

Vedanta Ltd's long-term credit ratings were upgraded by Crisil and ICRA due to improved capital structure and robust growth. The upgrades highlight Vedanta's enhanced financial flexibility and decreased leverage. The parent company, Vedanta Resources, also secured $800 million through a bond issue to prepay existing debts.

Vedanta Ltd has received a significant credit rating upgrade from Crisil Ratings, raising its long-term bank facilities and debt instruments to AA from AA-. This marks the second such upgrade in three months, reflecting the company's strong financial position and growth potential.

Crisil's upgrade is attributed to Vedanta's improved capital structure and financial flexibility, alongside substantial volume growth. The agency emphasized the company's enhanced operating profitability, reduced debt, and leverage meeting crucial thresholds.

This financial stride follows UK-based Vedanta Resources, the parent company, raising $800 million through a new bond issue, with proceeds designated for repaying the company's outstanding debt. The Indian multinational extends its operations across sectors including oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium.

(With inputs from agencies.)