Shares of Indian conglomerate Vedanta fell to their lowest level in more than a year on Wednesday after Moody’s Investors Service downgraded the rating of parent company Vedanta Resources’ senior unsecured bonds, citing a high restructuring risk of debt in the coming months.
The rating agency also expressed concerns over the ability of Vedanta Resources’ operating subsidiaries to generate cash flow in a “declining commodity price environment”.
Shares of the metals and oil group fell 6.3% to their lowest level since July 6, 2022, before paring losses to trade down 4.8% at 10:00 a.m. ET. East).
Moody’s downgraded the unsecured bond rating of Vedanta Resources from Caa2 to Caa3, and the rating of the company’s family owned by billionaire Anil Agarwal from Caa1 to Caa2, while maintaining a negative outlook.
Vedanta was the top loser in the Nifty 100 index, which fell 0.26 per cent.
The stock is on track to decline for the sixth straight session – its longest losing streak since late February – if the trend continues throughout the day.
2023-09-27 04:36:16
#Indian #company #Vedanta #hits #lowest #level #year #Moodys #downgrades #parent #company
