Moody’s downgrades Vedanta’s ratings further into speculative grade

Global credit ratings agency Moody’s has downgraded the corporate family rating of Anil Agarwal-owned Vedanta Resources Limited (VRL) to B2 from B1. Moody’s has also downgraded the ratings on the senior unsecured bonds issued by VRL and those issued by Vedanta Resources Finance II Plc (VRF) and guaranteed by VRL to Caa1 from B3, the agency said in a press release.

All ratings remain under review for further downgrade, it said.

“The downgrade primarily reflects the holding company VRL’s persistently weak liquidity and high refinancing needs amid growing signs of an aggressive risk appetite, with implications for the company’s financial strategy and risk management, a key component of our governance risk assessment framework,” Kaustubh Chaubal a Moody’s Vice President and Senior Credit Officer, said in the ratings rationale for the downgrade.