Moody's lowers Vedanta Resources' rating, flags rising refinancing risks

Rating agency maintains negative outlook on firm

Global rating agency Moody's downgraded Vedanta Resources Ltd's (VRL) corporate family rating (CFR) on Friday, from "B3" to "Caa1", on increasing refinancing risk surrounding the holding company.

The outlook on all ratings remains negative.

"Ongoing delays in holding company VRL's refnancing efforts and its continued reliance on dividend receipts are depleting liquidity at its operating subsidiaries," said Kaustubh Chaubal, Senior Vice-President, Moody's, in a statement.

Holding company VRL's cash needs for the fiscal year ending March 2024 (FY24) remain large. They include cross-border bonds of $400 million and $500 million due in April and May 2023, respectively, and a $1