Shares of Anil Agarwal-led Vedanta will be in focus during Thursday’s trading session after credit rating agency ICRA said on Wednesday that it has upgraded the mining major’s long-term credit rating over its strengthened credit profile. ICRA has upgraded the metals-to-mining conglomerate’s long-term credit rating has been upgraded to AA from AA-.
ICRA said the long-term rating upgrade considers an expected improvement in the company’s credit metrics following the successful fund-raising of $1 billion via a qualified institutional placement (QIP) in July and an additional $400 million generated from the offer for sale (OFS) of Hindustan Zinc Ltd in August.
This upgrade comes amid significant developments at Vedanta Group that focus on long-term strategic growth and financial strength. Vedanta Ltd. has built a war chest exceeding ₹22,000 crore, comprising mainly existing cash reserves, stake sales, and dividends from its subsidiary Hindustan Zinc Ltd.
Vedanta Resources Ltd is also actively pursuing to refinance a substantial portion of its outstanding bonds, aiming to further lower the consolidated entity’s interest costs. All the deleveraging efforts are also expected to improve the overall financial flexibility of the group, ICRA said.