Vedanta business spinoff may not affect parent's credit quality: Moody's

Currently, there is no separate disclosure on free cash flow generation by the different businesses; after spinoff each entity will report separate financials

The spinoff of Anil Agarwal-led Vedanta Limited’s (VDL) businesses into separate listed companies, which will result in three new listed entities with a shareholding mirroring that of VDL is not likely to affect credit quality of Vedanta Resources assuming it proceeds as currently expected. This is because Vedanta Resources Limited’s (VRL) economic interests in all businesses will remain unchanged, a Moody’s report said on Monday.

Vedanta Resources Limited's 65.2 per cent owned subsidiary, Vedanta Limited (VDL), announced that its board of directors have formed a subcommittee to evaluate a potential spinoff of its aluminum, iron and steel, and oil and