India Ratings and Research (Ind-Ra) Tuesday said it has revised the outlook of Vedanta Ltd to stable from positive. "The revision in outlook reflects the delay in deleveraging in FY19 and FY20...as against Ind-Ra's expectations, due to acquisition outflows and higher-than-expected dividend distribution," it said in a statement.
Ind-Ra, a Fitch Group company, affirmed its long-term issuer rating at 'IND AA', the statement said.
Instruments with rating 'IND AA' are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
The rating agency further said that it expects the Vedanta's Ebitda to grow to $4.1-4.2 billion in FY20, driven by volume growth at oil, aluminium, zinc (international) and zinc (India), and cost savings at the aluminium division.
Ind-Ra further said it expects the aluminium division's cost of production to ease in FY20, with a substantial improvement in local bauxite and linkage coal mix.
Additionally, Ind-Ra expects cost of production in zinc (India) to decline in FY20, as the volume ramps up.
Vedanta Ltd is a diversified natural resources company. Its business primarily involves producing oil & gas, zinc, lead, silver, copper, iron ore, aluminium and commercial power. It is the Indian subsidiary of Vedanta Resources Plc.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
