Crisil revises rating outlook on Vedanta Ltd to negative from stable

Delay in debt refinancing of Vedanta Resources, higher-than-expected dividends by Vedanta Limited seen as key rating sensitivity factors

Crisil has revised its rating outlook on non-convertible debentures and long-term bank facilities of Vedanta Limited to 'Negative' from 'Stable'.

The outlook revision factors in the risk of sharply lower commodity prices of Brent crude, zinc and aluminium in FY21 in the wake of the Coronavirus (Covid-19) pandemic.

Also, the operating profitability (EBITDA {earnings before interest, tax, depreciation, and amortisation}) for FY20 has moderated due to weaker aluminium and zinc prices, and slower-than-expected ramp-up in volumes across the zinc and oil and gas businesses.

For FY21, despite the weaker outlook for commodity prices, operating profitability is expected to improve, mainly led by volume