The agency reduced Vedanta’s issuer rating to “SD” or “selective default” from “CC,” indicating the agency believes the company has defaulted on some payments but will meet its other obligations on time.
The cut comes after Moody’s downgraded the miner’s corporate family rating and senior unsecured bonds on Tuesday.
S&P had earlier downgraded Vedanta Resources in September and December, while Moody’s previous cut came in September, all on the back of concerns around the group’s cash requirements.
S&P’s latest rating cut was spurred by Vedanta’s move to extend maturities of three U.S. dollar-denominated bonds, which the agency regarded as “distressed.”
“We do not consider the new terms of the proposed transaction as constituting adequate compensation to offset the maturity extension and some cash flow subordination to a new financing facility,” S&P said in a note.
Saddled with $6.4 billion in outstanding debt, including a $4.5 billion payment due by fiscal 2025, Vedanta has been attempting to shore up its finances. The group said last week it received bondholders’ support to restructure some of its near-term debt.
Group Chairman Anil Agarwal made several bids to trim debt, including an unsuccessful attempt to take the company private in 2020 and plans to spin off Vedanta into six separate companies.
