(Bloomberg) -- Bonds of Indian billionaire Anil Agarwal’s mining group Vedanta Resources Ltd. were upgraded on Friday by Moody’s Ratings, which cited the company’s recent successful efforts to access funding.
Moody’s revised Vedanta’s corporate family rating to B3 from Caa1, and also upgraded rating on senior unsecured bonds sold by Vedanta Resources and a wholly-owned subsidiary to Caa1 from Caa2, according to a release.
A Vedanta Resources unit sold a $900 million bond at a yield of 10.875% last month and priced an additional $300 million tap of the note at just under 10% this week. Some bonds of the group due in 2026 have doubled in price since mid-2022 to around par, as the company has benefited from a recovery in metal prices.
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Moody’s maintained a stable outlook on the ratings saying that reflected its expectation Vedanta will “address its debt maturities, in particular its next bond maturity in April 2026, in a timely manner,” especially given its recent track record of tapping dollar bond markets. It also said Vedanta’s recent liabilities management exercise has resulted in paring down its debt and easing some of its liquidity pressure.
The lower rating on the company’s notes compared to its corporate family rating reflects Moody’s “view that bondholders are in a weaker position” relative to creditors of the firm’s operating subsidiaries, it said.
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