Vedanta falls 6%, stock slumps to 52-week low after Moody’s rating cut
Shares of Vedanta fell 6 percent to hit a 52-week low of Rs 210 apiece on September 27 after Moody’s Investor Service downgraded corporate family rating of the Anil-Agarwal promoted company to Caa2 from Caa1. In the past three months, Vedanta stock has slipped 24 percent as against 5 percent rise in the benchmark Sensex. Earlier, the stock had touched a 52-week low of Rs 222 apiece on September 22.
Additionally, Moody’s has also downgraded rating on senior unsecured bonds to Caa3 from Caa2, issued by Vedanta Resources Limited (VRL) and those issued by VRL’s wholly-owned subsidiary, Vedanta Resources Finance 11 Plc, and guaranteed by VRL. At the same time, they have maintained a ‘negative’ outlook.
“The downgrade reflects elevated risk of debt restructuring over the next few months because VRL has not made any meaningful progress on refinancing its upcoming debt maturities, in particular the $1 billion bonds maturing each in January 2024 and August 2024,” said the ratings agency.
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