Vedanta share price rises 2% after Moody's upgrades corporate family ratings

Vedanta Ltd stock rises 2 percent after Moody's upgrades corporate family ratings.

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26 Aug, 2025 12:21

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Vedanta Ltd share price rose 2 percent on the National Stock Exchange (NSE) on Thursday, November 28 to Rs 454 per share on the NSE, following Moody's Ratings' upgrade of its parent company, Vedanta Resources Ltd.

The stock has surged by 94 percent over the past year, bringing its current market capitalisation to Rs 1.75 lakh crore.

Moody's has upgraded Vedanta Resources corporate family rating (CFR) to ‘B2’ from ‘B3’, and the rating on its senior unsecured bonds to ‘B3’ from ‘Caa1’.

The outlook on these ratings remains ‘stable’. The rating agency attributed the upgrade to Vedanta Resources’ recent liabilities management exercises, including successful bond issuances amounting to $800 million since September 2024.

“The bond issuances in quick succession solidify Vedanta's access to capital markets as well as growing investor confidence in the company,” said Nidhi Dhruv, Vice President and Senior Credit Officer at Moody's. Vedanta Resources raised $300 million in 10.25 percent senior unsecured notes due in June 2028, and $500 million in 11.25 percent senior unsecured notes due in December 2031, with proceeds earmarked for partial repayment of its higher-interest December 2028 notes.

These efforts have significantly reduced debt at Vedanta Resources’ holding company level, which dropped to $4.8 billion as of September 2024 from $9.1 billion in March 2022. Vedanta Resources’ recent bond transactions have also extended its debt maturity profile, with the next bond maturity of $600 million due in April 2026.

Vedanta Resources, the London-based parent company of Vedanta Ltd, derives most of its revenue from operations in India, spanning diverse commodities such as zinc, aluminium, iron ore, and oil and gas. Moody's said Vedanta Resources has large-scale, low-cost operations and strong market positions, but added that it has historically weak financial management and liquidity as key challenges.

Nonetheless, with the ratings upgrade, Moody’s showed confidence in Vedanta Resources’ ability to manage its liabilities effectively. Vedanta's bonds have also seen strong investor demand, with the latest issuance receiving orders of over $1.19 billion and pricing tighter than initial levels.

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