Moody's assigns B3 rating with negative outlook to Vedanta's USD notes

Though the notes will carry security in the form of a pledge on shares, Moody's does not view their position to be superior to the secured and unsecured debt at various operating companies

Moody's Investors Service has assigned a B3 rating to the proposed USD notes to be issued by Vedanta Holdings Mauritius II Limited, a wholly-owned, step-down subsidiary of Vedanta Resources Limited (VRL).

The outlook on the rating is negative. VRL is in the process of fully privatising its key operating subsidiary, Vedanta Limited (VDL), by increasing its stake to 100 per cent from 50.1 per cent and delisting the company.

"The proposed notes are rated at the same level as the existing senior unsecured notes issued by VRL, as well as those issued by VRL's wholly-owned subsidiary, Vedanta Resources Finance II Plc, and