Vedanta's credit rating was upgraded by Crisil

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Vedanta's credit rating was upgraded by Crisil
26 Feb 2022
6 min read

News Synopsis

Vedanta’s bank facilities and debt instruments were upgraded to ‘AA’ by Crisil on Friday. This type of rating is considered very trust worthy by financial companies. ‘AA’ ratings mean that it has low credit risk with a higher level of safety. In an official statement released yesterday, Crisil said: ''Crisil Ratings has upgraded its rating on the long-term bank facilities and debt instruments of Vedanta Ltd ...to ‘CRISIL AA’ from ‘CRISIL AA-‘, and has revised the outlook to 'Stable' from 'Positive’. The short-term rating on bank facilities and commercial paper has been reaffirmed at 'CRISIL A1+'.” Profitable operations along with an increase in the volume of business were some of the factors behind the rating up-gradation. Crisil said: ''EBITDA is thus, likely to be higher than expected, at over Rs 44,000 crore in fiscal 2022 (vis-à-vis around Rs 27,500 crore in fiscal 2021), and over Rs, 40,000 crores in fiscal 2023, and aid improvement in free cash flow and return on capital employed over the medium term.” Acting CFO, of Vedanta, Ajay Goel said: ''The upgrade in credit rating to AA/stable demonstrates superlative financial performance, improvement in corporate structure along with a sound capital allocation and balance sheet; the company remains well-positioned towards sustainable value creation.”

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