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RPT-Fitch Places Vedanta's 'BB+' Rating on Watch Negative
May 15, 2014 / 11:02 AM / in 3 years

RPT-Fitch Places Vedanta's 'BB+' Rating on Watch Negative

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May 15 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has placed India-based Vedanta Resources PLC’s (Vedanta) Long-Term Issuer Default Rating (IDR) of ‘BB+’ on Rating Watch Negative (RWN). The agency has also placed the company’s senior unsecured rating of ‘BB’ on RWN. A full rating breakdown is provided at the end of this commentary.

The rating was placed on RWN because Fitch is changing its approach to using metrics based on a proportional consolidated financial profile, given the significant minority shareholders at the key operating entities in the group, which have different debt and cash levels. Fitch previously used metrics based on the consolidated financial profile of the group.

The ratings may be downgraded by a maximum of one notch following the review. For the previous sensitivities, see the rating action commentary titled “Fitch Revises Vedanta’s Outlook to Stable; Affirms IDR at ‘BB+'” dated 16 May 2013 that used metrics based on the consolidated profile.

The full list of rating actions follows:

Long-Term Issuer Default Rating: ‘BB+'; placed on RWN

Senior Unsecured Rating: ‘BB’; placed on RWN

USD1.25bn senior unsecured bonds: ‘BB’; placed on RWN

USD1.65bn senior unsecured bonds: ‘BB’; placed on RWN

USD1.7bn senior unsecured bonds: ‘BB’; placed on RWN

USD180m senior unsecured loan facility: ‘BB’; placed on RWN

USD150m unsecured loan facility of Twinstar Holdings Ltd, Mauritius backed by an unconditional, irrevocable guarantee of Vedanta: ‘BB’; placed on RWN

USD170m senior unsecured loan facility of Valliant (Jersey) Limited backed by an unconditional, irrevocable guarantee of Vedanta: ‘BB’; placed on RWN

USD180m senior unsecured loan facility of Vedanta Finance (Jersey) Limited backed by an unconditional, irrevocable guarantee of Vedanta: ‘BB’; placed on RWN

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