S&P Global Ratings on Monday said it has raised long-term issuer credit rating on Vedanta Resources. The rating has been upgraded to 'CCC+' from 'selective default'.

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On January 12, S&P Global Ratings downgraded debt-laden Vedanta Resources Ltd to 'selective default' after the mining conglomerate concluded a deal with creditors to extend the maturities of its three dollar bonds.

S&P Global Ratings has also raised its long-term issue ratings on the company's outstanding bonds due in January and August this year, and March next year to 'CCC+' from 'D'.

"Completion of the liability management exercise has alleviated refinancing risk for Vedanta Resources, although liquidity risks remain," S&P Global Ratings said in a statement.

At the same time, S&P Global Ratings has raised its long-term issue rating on its April 2026 bond, which was not part of the liability management, to 'CCC+' from 'CCC'.

The stable outlook on the London-headquartered firm reflects the high prospects that the company will meet its debt obligations over the next 12-15 months, post completing its liability management exercise.

S&P Global Ratings said it believes further deleveraging is crucial for Vedanta Resources to render its debt servicing more sustainable. Vedanta Resources will likely use proceeds from potential asset sales to prepay a large part of its new private credit facility.

"This will reduce the group's interest burden as well as the cash flow subordination of other creditors. Both will be positive for refinancing, which is important since we estimate a sizable funding deficit of at least USD 1 billion in April 2026 when the private credit facility and USD 600 million of bonds mature," it said.