Vedanta hits 52-week low after Moodys downgrades Vedanta Resources CFR to Caa2
Vedanta share price NSE: Investor sentiment was weak after Moodys Investors Service downgraded the corporate family rating (CFR) of Vedanta Resources Ltd., the parent company of India-listed Vedanta Ltd to Caa2 from Caa1 over elevated risks of debt restructuring over the next few months.
Vedanta share price NSE: Shares of Anil Agarwal-led mining major Vedanta on Wednesday, September 27, dipped over 7 per cent to hit a 52-week low of Rs 208.1 apiece, thereby continuing the losing streak for the seventh straight session. The stock breached the previous 52-week low of Rs 222.55 touched last week.
Investor sentiment was weak after Moody's Investors Service downgraded the corporate family rating (CFR) of Vedanta Resources Ltd., the parent company of India-listed Vedanta Ltd to Caa2 from Caa1 over elevated risks of debt restructuring over the next few months. Vedanta shares ended 6.88 per cent or Rs 15.4 lower at Rs 208.6 on NSE.
Moody's has also downgraded its rating on the senior unsecured bonds issued by VRL and those issued by VRL's wholly owned subsidiary, Vedanta Resources Finance II Plc, and guaranteed by VRL, to Caa3 from Caa2 earlier.
In addition, the global rating agency has maintained a negative outlook on the company. Kaustubh Chaubal, Moody's Senior Vice President and lead analyst on VRL, said, "The downgrade reflects the elevated risk of debt restructuring over the next few months because VRL has not made any meaningful progress on refinancing its upcoming debt maturities, in particular the $1 billion bonds maturing each in January 2024 and August 2024."
Here's how the counter moved on Wednesday:
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