CRISIL upgrades Vedanta's long-term debt, loans ratings from 'AA-' to 'AA'

CRISIL improved its rating on Vedanta Ltd. on account of stronger than expected operating profitability due to high commodity prices in FY22.

CRISIL Ratings has upgraded the rating on Vedanta Ltd's long-term bank facilities and debt instruments from “AA-” to “AA” on stronger-than-expected operating profitability driven by elevated commodity prices during FY22. The upgrade also factors in volume growth across businesses, and sustained cost efficiency, especially in the aluminium business.

The short-term rating on bank facilities and commercial paper has been reaffirmed at ‘CRISIL A1+’.

While commodity prices are likely to moderate in FY23, from current spot levels, prices are expected to remain healthy. Thus, earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to be higher than expected, at over