S&P upgrades outlook on Vedanta Resources from 'negative' to 'stable'

Strong operating momentum and sizable free cash flow generation at Vedanta Ltd also improve liquidity at the holding company level

Rating agency Standard & Poor's has upgraded the outlook on Vedanta Resources from "negative" to "stable" on reduced refinancing risk. The upgrade also reflects the company's strengthened ability to meet its debt obligations over the next 12-18 months.

"Vedanta Resources Ltd's open offer to increase its ownership in subsidiary Vedanta Ltd to 65 per cent is positive for liquidity at the holding company level. It has announced an open offer to acquire an additional 10 per cent stake in its 55 per cent-owned subsidiary Vedanta Ltd. We anticipate the transaction, which should conclude by March 2021," the rating agency said. 

"The India-based