9 December 2024 : CRISIL upgraded its rating on Vedanta’s long-term bank facilities and debt instruments to ‘AA’ from ‘AA-’ while reaffirming the short-term rating at A1+.
“The rating upgrade factors the expected material improvement in the consolidated operating profitability (earnings before interest, tax, depreciation and amortisation [Ebitda]) of Vedanta along with improved capital structure with reduction in debt and leverage to below rating thresholds” CRISIL said in its rating rationale.
CRISIL has noted that Vedanta’s consolidated operating profitability (EBITDA, excluding brand and management fees to VRL) is expected to increase to more than Rs 45,000 crore in fiscal 2025, mainly supported by volume growth in aluminium, zinc international and iron ore segments, improved cost efficiencies in zinc and aluminium and healthy metal prices. EBITDA is expected to improve further in fiscal 2026, with expected completion of ongoing capital expenditure (capex) for capacity increase and operating efficiency improvement, especially in the aluminium business, it added.
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