Moody's: Vedanta unaffected

Moody's Investors Service says that Sterlite Industries (India) Ltd.'s copper expansion plan, to be funded by a $500 million foreign-currency convertible bond offering, has no impact on the ratings or outlook of its parent, Vedanta Resources plc.

Vedanta has a Ba1 corporate family rating, Ba2 senior unsecured rating and stable outlook.

The agency said the plan is in line with the company's strategy of taking advantage of the long-term growth prospects for the copper industry in India, which is likely to benefit from growth in demand driven by the power and infrastructure sectors.

The convertibles issuance will lead to an increase in reported debt. This does not materially affect Vedanta's credit metrics, Moody's said, but it will weaken its capacity to withstand either execution risk or a prolonged weakness in the operating environment for base metals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.