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S&P rates Vedanta loans BB
Standard & Poor's said it affirmed its long-term foreign currency corporate credit rating on Vedanta Resources plc at BB and removed the rating from CreditWatch, where it was placed with negative implications on Aug. 17.
S&P also assigned a BB rating to Vedanta's two bank loans totaling $3.15 billion - a senior secured term loan facility tranche B $1.65 billion three-year bullet term loan and a senior secured bridge to bond facility of $1.50 billion.
The outlook is negative.
Proceeds will be used to finance the proposed acquisition of Cairn India.
"We affirmed our rating on Vedanta to reflect our expectation that the company's overall business risk profile will remain unchanged after the Cairn acquisition. In our opinion, operating risk will increase for Vedanta because Cairn represents a new line of business, offsetting the benefits from diversified revenues. The rating affirmation assumes that the Cairn acquisition will proceed without material changes in the proposed terms," S&P analyst Suzanne Smith said in a statement.
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