S&P Global upgrades Vedanta Resources credit ratings to ‘B+’ over easing refinancing risks

American rating firm S&P Global Ratings, on Monday, February 3, announced that they had upgraded the UK-based mining giant Vedanta Resources' bonds over easing refinancing risks, reported the news agency Reuters. 

S&P Global upgraded the credit ratings of Vedanta Resources to a “B+” compared to its previous level of “B” with a stable outlook and removed it from credit watch, as per the news report.

Vedanta Resources is the parent and holding company of Vedanta Ltd, an Indian mining major listed on the stock market. Vedanta Ltd shares closed 4.12% higher at ₹421.65 after Monday's market session, compared to ₹439.75 at the previous market close. 

The global ratings agency also said that a further upgrade on the ratings will depend on the sustainable cash flow and dividend generation of the firm at the group level, according to the report.

The ratings firm also said that they considered the refinancing of $600 million 2026 bonds as a virtual certainty, which will reduce the liquidity pressure on the firm and minimise the refinancing risk.

“We consider the refinancing of $600 million 2026 bonds as a virtual certainty... Refinancing of the 2026 bonds will significantly reduce liquidity pressure and minimize refinancing risk,” according to S&P Global's official statement, cited by the news agency. 

Vedanta's rating upgrade history

Vedanta Resources has been witnessing a series of rating upgrades in recent months after the company started aiming to lower its debt and improve the firm's capital structure, reported the agency.

Another rating firm, Moody's, also upgraded the UK-based company's credit ratings, citing softening liquidity and refinancing risks in January 2025.

The last rating upgrade from S&P Global was in December when the firm upgraded Vedanta Resources' ratings to a “B” from the previous level of “B-”. In the year 2024 alone, the rating firm has upgraded the mining major's credit ratings three times, according to the agency report.