BAJAJ BROKING
Vedanta Resources' rating was upgraded to 'B' from 'CCC+' by S&P Global Ratings due to enhanced capital structure and liquidity. The company has sufficient internal funds to meet USD 1.4 billion debt maturities by 2025, supported by improved subsidiary performance.
S&P Global Ratings has upgraded Vedanta Resources Ltd's rating to 'B' from 'CCC+' due to an improved capital structure and better liquidity. This upgrade reflects the company's strengthened ability to meet its debt obligations.
Vedanta Resources Ltd, the parent company of Mumbai-listed Vedanta Ltd, has demonstrated sufficient internal resources to cover USD 1.4 billion in debt maturities by December 2025. This confidence is strengthened by recent fundraising and increased dividend capacity at its subsidiaries.
S&P has also raised the long-term issuer credit rating of Vedanta Resources and the issue ratings on its senior unsecured bonds to 'B-' from 'CCC+'. The rating agency has assigned a stable outlook, anticipating proactive measures by the company to address the maturity of USD 1.2 billion of debt due in April 2026, with a clear strategy expected by early 2025.
At the end of June, Vedanta Resources raised approximately USD 500 million by selling a 2.6% stake in its subsidiary Vedanta Ltd. This, along with expected dividends and brand fees from Vedanta Ltd, should enable the company to meet its financial obligations without needing external debt.
The company's liquidity access has been enhanced by the transfer of about USD 1.25 billion of general reserves to retained earnings at Hindustan Zinc Ltd, a 65% subsidiary of Vedanta Ltd. Improved operating performance at Vedanta Ltd has also increased its dividend-paying capacity.
Vendant shares closed at ₹433 on Thursday, slightly up by 0.069%. Although the one-month return of the stock has been -2.06%, it has given a return of 68.38% YTD. After the rating upgrade news, Vedanta stock will remain in focus.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
NHPC Q2 Results FY24-25 Preview | Estimate
08 Nov, 2024 | 2 Min. read
Mahindra & Mahindra Raises Fy25 Tractor Growth Forecast Amid Strong Q2 Results
08 Nov, 2024 | 3 Min. read
Tata Power Partners with Noida Airport for ₹550 Cr Renewable Energy Project
08 Nov, 2024 | 3 Min. read
MOIL Achieves Record October Production with 1.47 Lakh Tonnes, Up 32% YoY
08 Nov, 2024 | 2 Min. read
Commodities Market Today | WTI, Brent Crude, Gold, and Silver See Gains in Market Prices
08 Nov, 2024 | 1 Min. read
Share Market Today | Gift Nifty Hints At Flat Start; Markets In Range-Bound Trend
08 Nov, 2024 | 4 Min. read
Fed Cuts Rate by 25 Bps to 4.5-4.75% to Support Cooling Economy
08 Nov, 2024 | 2 Min. read
Gold Rate Today | Gold Rises 1.5% To $2,715.30, Silver Gains 2.5% To $32.11
08 Nov, 2024 | 2 Min. read
RVNL Q2 Results FY24-25 Highlights
08 Nov, 2024 | 2 Min. read
MRF Q2 Results FY24-25 Highlights
08 Nov, 2024 | 2 Min. read
Nerolac Paints Q2 Results FY24-25 Highlights
07 Nov, 2024 | 1 Min. read
Trent Q2 Results FY24-25 Highlights
07 Nov, 2024 | 2 Min. read
RBI Launches ULI: Transforming Loan Access
August 27, 2024 | 4 Min. read
Textile Sector in India
September 20, 2024 | 5 Min. read
List of IPOs with DRHPs Filed
November 30, 2023 | 3 Min. read
Aditya Birla Group
September 28, 2023 | 10 Min. read
Bajaj Housing Finance Ltd IPO: Things Smart Investors Need to Know
September 05, 2024 | 4 Min. read
Budget Stock Ideas 2024-2025 | Stocks to Buy Today
July 24, 2024 | 4 Min. read
IPO Eligibility Criteria : Full Details
March 15, 2024 | 6 Min. read
What Is the Lock-In Period in IPOs?
October 18, 2023 | 6 Min. read
Godfrey Phillips Announces 2:1 Bonus Shares
September 16, 2024 | 7 Min. read
Jindal Group- A Comprehensive Analysis
September 27, 2024 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading