Crisil upgrades Vedanta ratings: Economic Times update
New Delhi: Crisil Ratings has upgraded the long-term ratings of Vedanta group companies to AA+ while assigning a 'stable' outlook."Crisil Ratings has upgraded the long-term
New Delhi: Crisil Ratings has upgraded the long-term ratings of Vedanta group companies to AA+ while assigning a 'stable' outlook."Crisil Ratings has upgraded the long-term ratings of Vedanta Ltd (VEDL), Vedanta Aluminium Metal Ltd (VAML), and Vedanta Oil & Gas to AA+/stable, removing all three from 'Rating Watch with Developing Implications'," Vedanta Group said in a statement.Instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.Also Read: China's rare earth curbs put $6.5 trillion of global output at riskVedanta Ltd anchors the group with unmatched scale and market leadership in India, underpinned by its 61 per cent stake in Hindustan Zinc, a leading producer of zinc, lead, silver.
It also has a strong presence across copper, nickel and ferroalloys, along with 10 critical mineral and strategic mineral blocks.On leverage, Crisil stated, "The company's financial profile remains strong, with net leverage improving significantly to 0.7x as of 31 March 2026 under the demerged structure. Despite planned growth capital expenditure, leverage is expected to remain comfortably below 1.0x over the medium term."Also Read: Supply chain reset puts emerging markets
at the heart of critical minerals value chain: ReportThe lower leverage, together with sustained earnings and cash flow generation from Hindustan Zinc, has strengthened the company's financial profile and enhanced its financial flexibility, supported by the substantial market value of its investment, according to the statement."Vedanta Group has a diversified metals portfolio spanning zinc, silver, lead, aluminium, copper and nickel. The large scale of operations with a healthy market
share in the domestic aluminium and zinc businesses and the cost-efficient operations in these segments strengthen the Group's operating profile," the rating agency said.On the parent company Vedanta Resources, Crisil said, "The Group's financial flexibility has improved significantly post demerger with the substantial market value of Vedanta Resource's shareholdings in the demerged entities translating into a market value cover of 5.6 times against its net debt as on June 30, 2026."
The BriefWire