(Reuters) – S&P Global Ratings upgraded Vedanta Resources to “B” from “B-” after the parent company of Indian miner Vedanta Ltd secured minimum support needed for a debt restructuring plan.
The move reduces the risk of refinancing some of its bonds and suggests an improvement in the company’s capital structure.
The plan, approved earlier this week, removes a clause that would have accelerated payment of January 2027 and December 2028 bonds to April 20, 2026.
This marks S&P Global’s third upgrade for Vedanta Resources this year, following a similar action by Moody’s last month.
Vedanta Resources has been attempting to shore up its finances, including through debt restructuring.
Group Chairman Anil Agarwal has made several attempts to reduce debt, including an unsuccessful bid to take the company private in 2020 and plans to split Vedanta into six companies.
S&P had a “stable” outlook on Vedanta Resources, saying it expects refinancing risks to be more manageable.
“In our opinion, the passing of the consent solicitation eliminates the residual risk of an accelerated maturity following a US$400 million shortfall in Vedanta Resources’ most recent bond raising,” S&P Global analysts said in a note.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Tasim Zahid)
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