New 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.
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"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.
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The 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.
