Vedanta copper unit's prolonged shutdown is credit negative, says Moody's

The company's Tuticorin facility has been shut down since March 27, when it began a 15-day scheduled maintenance turnaround

A prolonged shutdown of Vedanta’s copper smelter plant at Tuticorin would be credit negative for the company and increase leverage marginally, credit rating agency Moody's said in a report on Monday.

Last Tuesday, UK-based Vedanta Resources plc had announced that the Tamil Nadu Pollution Control Board had rejected the company’s application to renew its right to operate its copper smelting facility in Tuticorin.

The facility has been shut down since March 27, when it began a 15-day scheduled maintenance turnaround.

Vedanta owns one of the two custom copper smelters in India and, according to International Copper Association (India), had a