New Delhi, Dec 3 (PTI) Vedanta Ltd on Tuesday said that Crisil Ratings Ltd has upgraded its rating on the company's long-term bank facilities and debt instruments.
Improved capital structure, better financial flexibility and strong volume growth are the key reasons for the upgrade.
Crisil has upgraded its rating on Vedanta's long-term bank facilities and debt instruments to AA from 'AA-', the rating agency said.
"The rating upgrade factors the expected material improvement in the consolidated operating profitability (earnings before interest, tax, depreciation and amortisation or Ebitda) of Vedanta along with improved capital structure with reduction in debt and leverage to below rating thresholds," Crisil said in its rating rationale.
This is the second upgrade for Vedanta by a major credit agency in the last three months.
In September, ICRA had upgraded Vedanta Ltd's long-term credit rating to AA from AA-, citing company's strengthened credit profile.
UK-based Vedanta Resources, the parent of India's Vedanta, has raised USD 800 million from global investors through a new bond issue.
The proceeds will be used to prepay the company's outstanding debt due in 2028. In September, Vedanta raised USD 900 million, the company's first dollar bond issue in more than two years, to prepay existing bonds.
Vedanta Ltd has operations in multiple countries in the sectors like oil and gas, zinc, lead, silver, copper, iron ore, steel and aluminium.