)
Shares of Sesa Sterlite are down over 1.5% on the BSE in an otherwise firm market after rating agency Standard and Poor's downgraded Vedanta Resources one notch to 'BB-' from 'BB' with negative outlook, citing expected weak financial performance for at least next 12 more months because of low oil prices.
A rating of BB means the issuer is less vulnerable in the near-term but faces major uncertainties to adverse business, financial and economic conditions. A BB minus is a notch below this and puts further concern on the company’s ability to meet its obligations.
"The outlook for Vedanta Resources is negative. At the same time, we lowered our long-term issue ratings on the company's guaranteed notes and loans to 'BB-' from 'BB'," S&P Ratings Services said in a statement.
"We downgraded Vedanta because we expect the company's financial performance to remain weak for at least 12 more months. Low oil prices have hit Vedanta's cash flows. Any delay in the ramp-up of the company's aluminium production could put additional pressure on the rating," S&P credit analyst Mehul Sukkawala said.
The stock opened at Rs 197.50, touched a high of Rs 197.70 and a low of Rs 192.50 on the BSE. At 1.05PM, a total of 250,229 shares changed hands on the BSE
