Fitch upgrades Vedanta Resources' long-term ratings with stable outlook

Fitch has upgraded Vedanta Resources Ltd's (VRL) long-term foreign-currency issuer default rating following a "significant reduction" in the company's refinancing risks.

The rating agency upgraded VRL's senior unsecured rating to 'B+' from 'B-' and also changed the outlook to stable, according to a statement.

Besides, it has upgraded "the ratings on the $ 300 million June 2028 bonds and $ 500 million December 2031 bonds, issued by VRL's subsidiary Vedanta Resources Finance II Plc (VRF2), and unconditionally and irrevocably guaranteed by VRL, to 'B+' from 'B-' with Recovery Rating of 'RR4'," the statement said.

The upgrade follows a significant reduction in VRL's refinancing risks, after it raised $ 1.1 billion in new bonds and received bank commitments for loans worth $ 350 million at the holding company, formed by VRL and other offshore investment holding companies owned by VRL, in January 2025, the statement said.

Once the proceeds are used to refinance existing debt, the holding company will have a long-dated and well-spread maturity profile, with the next large bond maturity more than four years away in September 2029 ( $ 1.2 billion).

The stable outlook reflects its view that VRL has adequate buffers to meet the holding company's liquidity needs in the next 18-24 months, given its improved funding access, and the availability of internal accruals and alternate sources of funding.

VRL is expected to have total capex of $ 1.7 -2.5 billion over FY26-FY28, it added.

VRL is the holding company for Vedanta Limited and Konkola Copper Mines.