Moody's upgrades Vedanta Resources' corporate family rating to Ba3

Ratings reflects benign operating environment, stabilising commodity prices will aid in enhancing EBITDA, cash flow generation

Moody's Investors Service today upgraded London-based Vedanta Resources Plc's corporate family rating (CFR) and senior unsecured bond rating and placed a stable rating outlook for the company.

"The upgrade of Vedanta's ratings reflects our view that the relatively benign operating environment and stabilizing commodity prices will aid in enhancing the company's EBITDA and cash flow generation," Moody's quoted Kaustubh Chaubal, vice president and senior analyst. "Moreover, a substantial reduction in absolute debt levels will lead to an improving trajectory for its credit metrics," he added.

The upgrade also reflects significant progress that Vedanta has made in reducing absolute debt levels following the