S&P Global Ratings cuts Vedanta Resources credit rating

S&P Global Ratings on Friday cut the rating of billionaire Anil Agarwal's Vedanta Resources Ltd rating to 'CCC' from 'B-' and placed it under "creditwatch with negative implications". Vedanta Resources Ltd (VRL) is a globally diversified natural resources company.

A CCC rating indicates higher vulnerability in meeting its financial commitments.

"We have... Lowered our long-term issuer credit rating on Vedanta Resources and the issue rating on the company's outstanding debt to 'CCC' from 'B-'. We also placed the ratings on creditwatch with negative implications," S&P Global Ratings said in a statement.

VRL started discussions with bondholders with respect to maturities of bonds worth about USD 3 billion.

"We believe VRL remains committed to avoid a payment default. We could assess such a liability management transaction," the statement said.

Meanwhile, mining conglomerate Vedanta Ltd on Friday announced plans to demerge five of its key businesses, including aluminium, oil and gas, and steel, into separate listed entities with a view to create shareholder value.

VRL owns 68.11 per cent of its Indian subsidiary Vedanta Ltd, which has significant operations in oil and gas, zinc, iron ore, aluminium, power and copper in India.