S&P lowers Vedanta Resources

Standard & Poor's said it lowered its long-term foreign currency and senior unsecured debt ratings on Vedanta Resources plc to BB from BB+. The outlook remains negative.

The rating on Vedanta is constrained by significant increase in expansion plans, specifically in the aluminum segment, potential increase in risks related to greenfield investments and exposure to cyclical trends in metal businesses, S&P noted.

These weaknesses are partly offset by the company's integrated operations and strong competitive position in zinc and low-cost position in copper, which have translated into significant increase in cash flows and demonstrated technical capability in executing the construction of new production facilities.

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