S&P affirms Vedanta, notes

Standard & Poor's said it affirmed its BB long-term foreign currency corporate credit rating on Vedanta Resources plc. The outlook is negative.

At the same time, the agency said it affirmed the BB issue ratings on the company's senior unsecured notes. The agency said it also affirmed the BB ratings on the senior unsecured notes issued by Vedanta's wholly owned subsidiaries and guaranteed by the company.

"We expect that the acquisition of Cairn India Ltd. will increase Vedanta's consolidated profitability and improve its cash flows," said S&P credit analyst Vishal Kulkarni in a news release.

"Nevertheless, the weaker-than-expected performance of Vedanta's other businesses is likely to somewhat offset the benefits from the Cairn acquisition. We partly attribute the weaker performance to increased country risk in India," Kulkarni said.

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