Vedanta Group says rating agency ICRA has upgraded the long-term credit ratings of key group entities, giving the company its highest domestic rating in more than a decade. According to Vedanta’s statement, ICRA raised the long-term ratings of Vedanta Ltd and Vedanta Aluminium Metal Ltd (VAML) to AA+ with a stable outlook. ICRA also upgraded Talwandi Sabo Power Limited (TSPL) to AA- Stable from A+/Watch. ICRA keeps Vedanta’s short-term rating at the highest category of A1+.\n\nThe upgrade follows what ICRA cites as strengthening operational and financial fundamentals, including improved profitability, liquidity and financial flexibility across major businesses. ICRA also points to a better refinancing profile, citing lower borrowing costs, proactive repayment of debt and extension of debt maturities. Vedanta said the improved ratings reflect stronger operational performance and structural efficiencies after its demerger. ICRA expects these trends to continue through FY27, supported by favourable commodity dynamics, improving cost structures and earnings visibility across aluminium, zinc and oil and gas businesses. The AA+ ratings cover entities that account for more than 75% of the group’s long-term debt.
Vedanta receives highest domestic credit ratings after ICRA upgrade
Vedanta Group says rating agency ICRA has upgraded the long-term credit ratings of key group entities, giving the company its highest domestic rating in more than a decade. According to Vedanta’s stat...
- ICRA upgrades Vedanta Ltd and VAML long-term ratings to AA+ with a stable outlook.
- ICRA upgrades TSPL long-term rating to AA- Stable from A+/Watch.
- ICRA reaffirms Vedanta’s short-term rating at A1+.
- Vedanta says the upgrades represent its highest domestic credit rating since 2014.
- ICRA cites stronger profitability, liquidity and an improved refinancing profile, including lower borrowing costs and extended debt maturities.
ICRA also highlighted the strengthening of Vedanta’s refinancing profile through lower borrowing costs, proactive debt repayments and extension of debt maturities
2 months agoNew Delhi: Vedanta Group on Friday said that it has received its highest domestic credit rating in over a decade after rating agency ICRA upgraded the long-term ratings of its key group entities to AA+.Securities with an AA+ rating are considered to have a high degree of safety regarding timely servicing of financial obligations. Such securties carry very low credit risk.This reinforces confidence in the group's strong operational performance along with its robust financial profile and structural efficiencies post-demerger, Vedanta said in a statement.Read More: Global power equations to shift further towards energy, critical minerals: Former Vedanta Group CEO"ICRA upgraded the long-term ratings of Vedanta Ltd and Vedanta Aluminium Metal Ltd (VAML) to AA+ with a stable outlook, while Talwandi Sabo Power Limited (TSPL) was upgraded to AA- Stable from A+/WatchDeveloping," Vedanta said in a statement.The agency also reaffirmed the Group's short-term rating at the highest category of A1+.The latest rating action marks Vedanta's highest domestic credit rating since 2014 and represents a significant milestone for the Group as two of the largest businesses emerging from the demerger framework have now secured an AA+ rating.Together, these two businesses account for over 75 per cent of the group's long-term debt.In its rationale, ICRA highlighted Vedanta's stronger profitability on the back of robust operational performance, improving liquidity profile and enhanced financial flexibility across key businesses.Read More: Vedanta Resources looking to rejig $5.5 bn holdco debt in one goThe agency expects these trends to continue through FY27, supported by favourable commodity dynamics, improving cost structures and strong earnings visibility across aluminium, zinc and oil and gas businesses. ICRA also highlighted the strengthening of Vedanta's refinancing profile through lower borrowing costs, proactive debt repayments and extension of debt maturities.
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