Mining giant Vedanta witnessed a decline of up to 2.7% on Wednesday, reaching a day’s low of Rs 253 on the BSE. This downturn followed the rating agency Moody’s Investors Service downgrading the rating on Vedanta Resources’ senior unsecured bonds from Caa3 to Ca.
Moody’s also adjusted the Corporate Family Rating (CFR) of Vedanta Resources, downgrading it to Caa3 from Caa2. According to Moody’s Senior Vice President Kaustubh Chaubal, the debt restructuring was viewed as a measure to avoid default, but the agency considered it a distressed exchange, leading to the downgrade of VRL’s ratings. This move reflects Moody’s assessment that creditors incurred an economic loss concerning the original commitment.
