S&P raises corporate credit rating of Vedanta Resources

S&P Global Ratings today raised its foreign currency long-term corporate credit rating on Vedanta Resources to 'B+' from 'B'with a stable outlook.
At the same time, S&P Global Ratings has also raised its long-term issue ratings on the company's issued or guaranteed notes and loans to 'B+' from 'B', it said in a statement.
"We raised the rating to reflect our expectation that Vedanta Resources' operating performance will improve over the next 12-18 months owing to higher commodity prices and the company's ramp-up of its aluminum operations," S&P Global Ratings credit analyst Mehul Sukkawala said.
"We also anticipate that Vedanta Resources will continue to have adequate financial flexibility to manage its refinancing over the period," Sukkawala said.

Vedanta Resources is a London-headquartered metals and oil holding company, with most of its operations in India.
Vedanta Resources continues to raise aluminum capacity at its second Balco smelter in Chhattisgarh. It has started ramping up the fifth potline at its Jharsuguda plant in Odisha.

In addition, the company has completed commissioning its power capacity and continues to increase iron-ore production.
"We believe the improved operating performance will also strengthen Vedanta Resources' weak financial position," Sukkawala said.
Meanwhile, Moody's Investors Service has assigned a B3 rating to the proposed senior unsecured notes to be issued by Vedanta Resources plc.
Proceeds from the issuance are expected to be used towards retiring, in part, the company's senior unsecured notes maturing in 2018 and 2019.

"The proposed notes are rated at the same level as the company's existing senior unsecured notes, and are two notches below Vedanta's B1 corporate family rating. The ratings outlook is stable," -- Moody's Investors Service said in a statement.