S&P upgrades outlook on Vedanta Resources to 'stable'

The rating agency also affirmed rating for company's foreign currency long-term corporate credit rating at 'BB'

Standard & Poor’s Ratings has revised outlook on Vedanta Resources from “negative” to “stable” on improving operating stability.

The agency affirmed the company’s foreign-currency long-term corporate credit rating at BB.

“The cash flows from Vedanta's oil and zinc businesses in India continue to be in line with our expectation and are a key financial strength for the company.”

S&P expects Vedanta’s other businesses to scale gradually and augment cash flow.

This, combined with moderate capital expenditure, will help the company to continue registering positive free operating cash flow.

In addition, Vedanta has refinanced more than US$4 billion in debt over the past 18 months. The company's debt maturities over the next two years appear manageable, S&P said.