Fitch Ratings has placed Cairn India Holdings Ltd on Rating Watch Negative (RWN) list following announcement by mining billionaire Anil Agarwal to delist its parent Vedanta Ltd. Cairn India Holdings Ltd (CIHL) , a subsidiary of Vedanta, was rated \u2018B+\u2019 by Fitch. \u201cThe action follows the announcement by (Agarwal\u2019s) Vedanta Resources Ltd (VRL) of its intention to delist the shares of its Indian subsidiary and CIHL\u2019s parent, Vedanta Ltd (VLTD). CIHL\u2019s rating is aligned with the credit profile of VLTD, which owns 100 per cent of CIHL, reflecting their strong linkages,\u201d Fitch said in a statement.<\/p>\n
Should the delisting succeed, Fitch will assess the linkage between VRL and VLTD as \u2018Strong\u2019, rather than \u2018Moderate\u2019, and the agency will view the group as a single economic block. This will result in Fitch assessing VLTD\u2019s credit profile based on the consolidated VRL Group, which Fitch believed is \u201cweaker\u201d. VLTD\u2019s creditors have good access to its operating cash flow due to limits on cash leakages and being structurally and jurisdictionally closer to operating companies.<\/p>\n","protected":false},"excerpt":{"rendered":"
Fitch Ratings has placed Cairn India Holdings Ltd on Rating Watch Negative (RWN) list following announcement by mining billionaire Anil Agarwal to delist its parent Vedanta Ltd. Cairn India Holdings Ltd (CIHL) , a subsidiary of Vedanta, was rated \u2018B+\u2019 by Fitch. \u201cThe action follows the announcement by (Agarwal\u2019s) Vedanta Resources Ltd (VRL) of its intention to delist the shares of its Indian subsidiary and CIHL\u2019s parent, Vedanta Ltd (VLTD). CIHL\u2019s rating is aligned with the credit profile of VLTD, which owns 100 per cent of CIHL, reflecting their strong linkages,\u201d Fitch said in a statement. Should the delisting succeed, […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,195,138],"tags":[],"class_list":["post-357022","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-oil-gas-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/357022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=357022"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/357022\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=357022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=357022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=357022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}