"With the bond proceeds used towards retiring existing debt, we do not expect any impact on leverage, although we expect savings in annual interest expense to the tune of $8.5 million," said Moody's in its release on Wednesday.
Historically, Vedanta refinanced its debt closer to its scheduled debt maturity.
Today's bond issuance constitutes a proactive step in refinancing debt maturities and in lengthening the age profile of its debt, said the agency.
"Following the $1 billion issuance and the ensuing debt repayments, we estimate that Vedanta has extended the average remaining life of holdco debt maturities to around 3.2 years from 2.7 years, and has reduced its holdco debt maturing in FY19 by 31%," said Moody's.
"Improved yields and favourable market conditions supported high investor demand with the issuance 2.3 times oversubscribed and the bond pricing tighter than the initial guidance," said Moody's.
 "Vedanta's $1 bn-bond issuance is a sound refinancing strategy: Moody's")