Vedanta Resources terminates Moody’s services
Days after downgrading the company’s ratings, Vedanta Resources terminated Moody’s services. Moody’s lowered the company’s corporate family rating on Monday from B2 to B3.
According to a story in The Economic Times, the business said on Thursday, “Vedanta Resources Limited now announces that it has today given notice to Moody’s Investor Services to end its rating engagement and to withdraw all the outstanding ratings.”
The cessation of services followed a Tuesday dispute between the holding firm of the empire under the direction of Anil Agarwal and Moody’s. It described Moody’s worries as exaggerated and unwarranted and claimed that, because to a strong balance sheet and ample cash, it was in a very comfortable position to deal with all of its debt deadlines.
In the statement, the corporation also stated that the ratings agency had disregarded its repeated justifications and liability management strategies. The grades were based on “unreasonable and subjective assessment,” according to the statement.
“Given that the company has not yet secured funding for its significant maturities due in April 2023 and Vedanta Resources Finance II Plc’s due in May 2023, which is taking longer than Moody’s earlier expectations of completion by October 2022, today’s rating action reflects VRL’s rising refinancing pressure. VRL’s aggressive obligation management is evident from how close the significant maturities’ due dates are without a refinancing finished well in advance “In the ratings report, Moody’s Senior Vice President Kaustubh Chaubal made the statement.
According to Moody’s, the holding firm VRL’s poor liquidity, high refinancing costs, and significant looming debt and maturity dates pose a serious credit risk, particularly in light of growing inflation and higher interest rates.