Vedanta Resources CFR under review for downgrade: Moody's
Published On: Tuesday, October 20, 2020 | By: Team KnowMyStock
Moody's Investors Service placed Vedanta Resources Limited's B1 corporate family rating (CFR) under review for downgrade today(20th Oct.2020). Concurrently, Moody's has placed under review for downgrade the B3 ratings on the senior unsecured bonds issued by Vedanta and those issued by its wholly-owned subsidiary, Vedanta Resources Finance II Plc, and guaranteed by Vedanta, affecting $4.2 billion in outstanding debt. The rating outlook was changed to ratings under review from negative. "The review follows an increase in refinancing risk and significant funding needs at the holding company level, following Vedanta Resources' failure to acquire the balance shareholding in key subsidiary Vedanta Limited that would have improved access to group cash," the report Kaustubh Chaubal, a Moody's vice president and senior credit officer as saying.
On 10 October, the company announced that its voluntary delisting offer--to acquire the balance shareholding in key subsidiary Vedanta Limited and then delisting it from the stock exchange--had failed at the reverse book building stage.
The total number of shares tendered by Vedanta Limited's public shareholders fell 7 per cent short of the mandatory minimum 90 per cent for successful delisting.
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