AMN
Vedanta Ltd.’s shares price slumped to their lowest level in 14 months after Moody’s downgraded the corporate family rating of parent Vedanta Resources Ltd. Moody’s lowered the rating to ‘Caa2’ from ‘Caa1’ while maintaining a ‘negative’ outlook. The downgrade is on account of the weak liquidity of Vedanta Resources because of large refinancing needs and interest expenses amid tightening financing conditions in global market.
“The downgrade reflects elevated risk of debt restructuring over the next few months because VRL has not made any meaningful progress on refinancing its upcoming debt maturities, in particular the $1 billion bonds maturing each in January 2024 and August 2024,” said Kaustubh Chaubal, senior vice president and lead analyst on VRL at Moody’s.