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Vedanta Resources: Getting ZINCronized

Vedanta Resources PLC (VED LN) ("Vedanta")'s rating upgrade by Moody's on 20-November reflects India's sovereign rating upgrade 3 days before, in our view, as operating environment is a main driver in Moody's rating model. Vedanta's improving credit metrics, evidenced by improving first half results, announced on 10-November was self-evident, in our opinion, but India's sovereign rating upgrade by Moody’s on 17-November was the reason why the agency abandoned its conservatism on commodity price projection and subsequently upgraded Vedanta's credit ratings. The potential positive rating action by S&P, following Moody's upgrade, and Vedanta's lengthening debt maturity profile are both credit and spread positive, in our view. Read more:

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