Fitch affirms Vedanta

Fitch Ratings said it affirmed Vedanta Resources plc's long-term issuer default rating at BB+ following its proposed reorganization.

The outlook is stable.

The agency also said it affirmed Vedanta Resources' $1.25 billion senior unsecured bonds at BB, $1.65 billion senior unsecured bonds at BB and $180 million senior unsecured loan facility at BB.

Fitch also affirmed Twinstar Holdings Ltd., Mauritius' $150 million unsecured loan facility at BB. That loan is backed by an unconditional, irrevocable guarantee of Vedanta.

The agency said it believes the reorganization will reduce the extent of debt to be serviced to $3.8 billion from the current $9.7 billion at the holding company and, in turn, reduce dividend leakages from some of the operating entities to Vedanta.

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