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Vedanta Share News (VED)
Share News for Vedanta (VED)
| Share Price: 1,281.00 | Bid: 1,279.00 | Ask: 1,280.00 | Change: 0.00 (0.00%) |  | ||||||
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TEXT-S&P Summary: Vedanta Resources PLC
Thu, 31st May 2012 13:16
(The following statement was released by the rating agency)
May 31 -
======
Summary analysis -- Vedanta Resources PLC ------------------------- 31-May-2012
===============================================================================
CREDIT RATING: Country: United Kingdom
Foreign currency BB/Negative/-- Primary SIC: Metal mining
services
Mult. CUSIP6: 92241T
===============================================================================
Credit Rating History:
Local currency Foreign currency
20-Jan-2006 --/-- BB/--
02-Feb-2005 --/-- BB+/--
===============================================================================
Rationale
The corporate credit rating on Vedanta reflects our view that the holding company's financial risk profile is 'aggressive' and its business risk profile is 'fair,' as defined in our criteria.
Vedanta's financial strategy, which we view as aggressive, places much of its debt, but a minimum of its cash, at the holding company. Operational risks in Vedanta's metals and mining businesses in India are growing, in our opinion. The company has limited backward integration in aluminum, power, and copper. Vedanta is also exposed to the volatility in commodity prices. Nevertheless, the company's strong market position in zinc and its low-cost production in oil and gas partly offset the above weaknesses. In addition, Vedanta's cash flow coverage metrics are supportive of a higher financial risk profile when viewed on a consolidated basis.
We believe that Vedanta's business and cash flow diversity has improved with its acquisition of Cairn India Ltd. We expect the acquisition of the oil and gas company to increase Vedanta's consolidated profitability and improve its cash flows. In line with our expectation, Cairn recently received approval to increase its oil production by 25,000 barrels per day from its Rajasthan block. We expect the zinc and oil businesses to contribute more than half of Vedanta's consolidated cash flows in fiscal 2013.
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
(The following statement was released by the rating agency)
May 31 -
======
=========================================================================
Summary analysis -- Vedanta Resources PLC ------------------------- 31-May-2012
===============================================================================
CREDIT RATING: Country: United Kingdom
Foreign currency BB/Negative/-- Primary SIC: Metal mining
services
Mult. CUSIP6: 92241T
===============================================================================
Credit Rating History:
Local currency Foreign currency
20-Jan-2006 --/-- BB/--
02-Feb-2005 --/-- BB+/--
===============================================================================
Rationale
The corporate credit rating on Vedanta reflects our view that the holding company's financial risk profile is 'aggressive' and its business risk profile is 'fair,' as defined in our criteria.
Vedanta's financial strategy, which we view as aggressive, places much of its debt, but a minimum of its cash, at the holding company. Operational risks in Vedanta's metals and mining businesses in India are growing, in our opinion. The company has limited backward integration in aluminum, power, and copper. Vedanta is also exposed to the volatility in commodity prices. Nevertheless, the company's strong market position in zinc and its low-cost production in oil and gas partly offset the above weaknesses. In addition, Vedanta's cash flow coverage metrics are supportive of a higher financial risk profile when viewed on a consolidated basis.
We believe that Vedanta's business and cash flow diversity has improved with its acquisition of Cairn India Ltd. We expect the acquisition of the oil and gas company to increase Vedanta's consolidated profitability and improve its cash flows. In line with our expectation, Cairn recently received approval to increase its oil production by 25,000 barrels per day from its Rajasthan block. We expect the zinc and oil businesses to contribute more than half of Vedanta's consolidated cash flows in fiscal 2013.
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Vedanta's KCM says to cut 2,000 mining jobs in Zambia
LUSAKA, May 24 (Reuters) - Zambia's Konkola Copper Mines owned by London-listed Vedanta Resources will cut 2,000 jobs to restore profits, the company[Yesterday 14:24]
US bond market tone mixed before Fed speeches
By John BalassiMay 21 (IFR) - Market tone is mixed early on Tuesday, but the pace of US high-grade issuance is still expected to pick up after yesterd[Tue 11:45]
Solid week of US high-grade issuance expected
By John BalassiMay 20 (IFR) - Despite heading into Monday with increased interest-rate volatility, and stock futures slightly in the red after a big r[Mon 11:40]
US high-grade winds down fourth-busiest week of 2013
By Michael GambaleMay 17 (IFR) - This has been the fourth busiest week of the year for high-grade volume with just over USD36.5bn priced, as both inve[17 May '13]
UPDATE 1-Vedanta sends Dubai copper to India after Sterlite closure
* Vedanta exporting 4,000 tonnes/month from Dubai* Next hearing on Sterlite copper plant closure on May 22* Vedanta says no significant cost from smel[16 May '13]
Vedanta's Dubai unit exporting copper to Sterlite's India clients
NEW DELHI, May 16 (Reuters) - Vedanta Resources Plc's Dubai unit is exporting 4,000 tonnes of refined copper a month to customers of India's Sterlite[16 May '13]
US high-grade bond market tone subdued after Merck jumbo trade
By John BalassiNEW YORK, May 16 (IFR) - Market tone is relatively muted early on Thursday, despite the surprisingly better-than-expected first quarter[16 May '13]
India court to resume Sterlite case hearing on May 22
NEW DELHI, May 16 (Reuters) - Sterlite Industries' copper smelter will remain shut until at least May 22 when a court will resume hearing into compla[16 May '13]
