Vedanta faces moody’s rating downgrade
Vedanta Limited’s shares dropped by 3% to Rs 253 in early trade on January 10 following Moody’s Investors Service second downgrade of the company’s corporate family rating (CFR) and senior unsecured bonds. The downgrade includes Vedanta Resources’ CFR to Caa3 from Caa2 and its senior unsecured bonds to Ca from Caa3, maintaining a negative rating outlook. The rating agency predicts Vedanta Resources might face significant liquidity challenges in the next 24 months, posing a high risk of default. Moody’s considers the debt restructuring as a form of default avoidance, raising concerns about economic losses for creditors and leading to the downgrade. S&P Global Ratings had previously lowered Vedanta Resources’ rating in September and December.
