Mining mogul Anil Agarwal-led Vedanta Resources Ltd’s (VRL) failed attempt to take full ownership of its profitable operating subsidiary Vedanta Ltd will weaken liquidity, Moody’s Investors Service said on Tuesday giving reasons for it placing VRL’s rating under review for downgrade.
Earlier this month, VRL did not get the mandatory shares from the public to delist Mumbai-listed Vedanta Ltd (VDL).
“Without operations of its own, VRL – as the holding company – needs to refinance debt maturities at a time of tight capital market liquidity, putting undue pressure on key subsidiaries to upstream cash,” says Kaustubh Chaubal, Moody’s Vice President and Senior Credit Officer.
