 "Vedanta")
Debt-laden Vedanta Resources Ltd. has been downgraded to selective default by S&P Global Ratings after the miner concluded a deal with creditors to extend the maturities of its three dollar bonds.
The junk-rated miner said last week its bondholders approved the changes after months of talks to tackle more than $3 billion of bonds maturing in 2024 and 2025. Under the deal, the company will pay $779 million upfront, with the remaining principal extended by as much as four years.
“We regard the transaction as distressed under our criteria,” the ratings agency said in a statement on Friday. The company also “lowered the issue ratings on the company’s bonds due January 2024, August 2024, and March 2025 to ‘D’ from ‘CC’.”
A heavy debt load amassed due to a string of acquisitions has weighed on the group controlled by billionaire Anil Agarwal. It has already slashed about $3 billion worth of borrowings. India-based subsidiary Vedanta Ltd. also announced plans to split up and spin off parts of the business.
