S&P assigns Vedanta notes B-

S&P Global Ratings today assigned its B- long-term issue rating to Vedanta Resources Ltd.’s upcoming guaranteed senior unsecured notes.

Vedanta Resources Finance II plc will issue the notes. Vedanta Resources and two of its subsidiaries, Twin Star Holdings Ltd. and Welter Trading Ltd., will guarantee them These two subsidiaries together own 38.1% in Vedanta Ltd., which is Vedanta Resources’ subsidiary.

“We rate the proposed notes the same as the issuer credit rating on Vedanta Resources (B-/stable/--). We do not notch the issue rating for subordination risk because a majority of the company’s assets are in India, a jurisdiction where we believe the priority of claims in a bankruptcy scenario is highly uncertain,” the agency said in a press release.

The issuer will lend the proceeds to Twin Star for the acquisition of equity shares of Vedanta Ltd. Any remaining proceeds will be used to service debt.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.