Moody’s Investor Services has upgraded Vedanta Resources’s ratings to B1 from B2. It has also upgraded the company’s unsecured rating to B3 from Caa1 and said the rating outlook is stable.
The rating agency hoped that a successful merger of Cairn India with Vedanta would improve the group’s liquidity and enhance its financial flexibility.
This could result in debt reduction. Improvement in the commodity prices also augurs well for the company.