Shares of Indian conglomerate Vedanta fell to one-year high on Wednesday after Moody’s Investors Service downgraded parent company Vedanta Resources’ senior unsecured bonds, citing high risks of debt restructuring in the coming months. lowest level in many years.
The rating agency also expressed concerns over the ability of Vedanta Resources’ operating subsidiaries to generate cash flow in a “weak 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 fall 4.8% as of 10:00 am IST.
Moody’s downgraded Vedanta Resources’ unsecured bond rating to Caa3 from Caa2 and the corporate family rating of the company owned by billionaire Anil Agarwal to Caa2 from Caa1, while maintaining a negative outlook.
Vedanta was the top loser on the Nifty 100 index, which fell 0.26 per cent.
If the trend continues, the stock is on pace to drop for a sixth consecutive session — its longest losing streak since late February.
