(Reuters) – S&P Global Ratings upgraded the rating on Vedanta Resources on Monday, citing easing refinancing risks for the UK-based natural resources group.
The rating agency bumped up the parent of Indian miner Vedanta to “B+” from “B” with a stable outlook and removed it from credit watch.
A further upgrade will depend on sustainable cash flow and dividend generation at the group level, the ratings agency said.
“We consider the refinancing of $600 million 2026 bonds as a virtual certainty… Refinancing of the 2026 bonds will significantly reduce liquidity pressure and minimize refinancing risk,” S&P Global Ratings said in a statement.
Vedanta Resources has seen its rating being upgraded in recent months after seeking to lower its debt and improve its capital structure.
In January, Moody’s upgraded the company, flagging softening liquidity and refinancing risks.
S&P had upgraded Vedanta Resources thrice in 2024, with the latest raise to “B” from “B-” in December.
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala)
