Vedanta Resources Targets Higher Credit Rating Amid Strategic Debt Reduction

Vedanta Resources Ltd aims for an investment grade credit rating by reducing its debt from USD 5 billion to USD 3 billion by FY27. The company plans to refinance high-interest loans and leverage strong financial performance. Vedanta is pursuing a demerger to create value-driven entities for shareholders.

Vedanta Resources Ltd (VRL), based in London, is on a mission to achieve an investment-grade credit rating as the company commits to substantial debt reduction and strategic financial improvements.

VRL is set to cut its total debt from USD 5 billion to USD 3 billion by the fiscal year 2027, focusing on critical minerals, transition metals, and technology. At recent investor gatherings in Hong Kong and Singapore, the company shared its strategy of seeking immediate upgrades to BB levels via refinancing and prepaying its USD 550 million private credit facility by August 2026.

With its ongoing projects, strong earnings, and plans for demerger aimed at unlocking shareholder value, VRL is confident of securing a robust financial profile. By FY25, VRL managed to lower its net debt from USD 8.9 billion to USD 5 billion, continuing its trajectory toward improved credit ratings and financial performance.

(With inputs from agencies.)