Vedanta Ltd's Credit Rating Upgrade Signals Financial Strength

ICRA has upgraded Vedanta Ltd's long-term credit rating to AA from AA-. This upgrade reflects the company's improved credit profile, benefiting from successful fund-raising and strategic financial moves. Vedanta's financial strength is bolstered by significant cash reserves, stake sales, and refinancing efforts aimed at reducing interest costs.

ICRA on Wednesday announced that it has upgraded Vedanta Ltd's long-term credit rating, showcasing the company's strengthened credit profile.

The rating has been elevated from AA- to AA, highlighting an anticipated improvement in Vedanta's credit metrics following substantial fundraising initiatives.

The company raised USD 1 billion through a qualified institutional placement in July and an additional USD 400 million from the offer for sale of its subsidiary Hindustan Zinc Ltd in August.

These developments point towards Vedanta Group's focus on strategic growth and financial fortitude.

Vedanta Ltd's financial arsenal now exceeds Rs 22,000 crore, built from cash reserves, stake sales, and dividends from Hindustan Zinc Ltd.

In a parallel effort, Vedanta Resources Ltd is engaged in refinancing significant portions of its outstanding bonds, aiming to lower interest costs and enhance the group's financial flexibility.

(With inputs from agencies.)