Moody's downgrades Vedanta Resources' CFR to B2 citing weak liquidity

Revised ratings on firm's senior unsecured bonds from "B3" to "Caa1". All ratings remain under review for further downgrade

Rating agency Moody's has downgraded the corporate family rating (CFR) of Vedanta Resources Limited (VRL) from “B1” to “B2” due to its persistently weak liquidity and high refinancing needs.

Moody's has revised the ratings on the VRL’s senior unsecured bonds from “B3” to “Caa1”. All ratings remain under review for further downgrade.

The downgrade primarily reflects holding company VRL's persistently weak liquidity and high refinancing needs amid growing signs of an aggressive risk appetite. This has implications for the company's financial strategy and risk management, said Kaustubh Chaubal, Vice President and Senior Credit Officer, Moody’s.

The rating action also considers the impact of