Credit rating agency – India Ratings and Research (Ind-Ra) has revised the outlook for Vedanta (VDL) to stable from negative and also affirmed the company's long-term issuer rating. The long-term issuer rating of the company is 'AA-'. Instruments with rating 'AA' carry very low credit risk.
The outlook revision reflects the Vedanta group's improved liquidity position, supported by the moderated refinancing risks at VRL (Vedanta Resources). The liquidity improvement resulted from VDL's improved operational cash flows in 2HFY21, supported by its enhanced volume performance, cost improvements and a sharp recovery in metal prices.
Vedanta is a diversified natural resources company, whose business primarily involves producing oil and gas, zinc- lead-silver, copper, iron ore, aluminium and commercial power.
