Vedanta Achieves Highest Credit Rating in Over a Decade Following ICRA Upgrade

Vedanta Group Secures Highest Domestic Credit Rating in Over a Decade

The Vedanta Group has received its highest domestic credit rating in over a decade after rating agency ICRA upgraded the long-term ratings of its key group entities to AA+. This upgrade reinforces confidence in the group's strong operational performance, robust financial profile, and structural efficiencies post-demerger.

The upgraded ratings apply to Vedanta Ltd and Vedanta Aluminium Metal Ltd (VAML), which have been upgraded to AA+ with a stable outlook. Additionally, Talwandi Sabo Power Limited (TSPL) has been upgraded to AA- Stable from A+/WatchDeveloping. ICRA has also reaffirmed the Group's short-term rating at the highest category of A1+.

This latest rating action marks Vedanta's highest domestic credit rating since 2014 and represents a significant milestone for the Group. Two of the largest businesses emerging from the demerger framework have now secured an AA+ rating, accounting for over 75% of the group's long-term debt.

Read also: SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire

ICRA's rationale for the upgrade highlights Vedanta's stronger profitability, driven by robust operational performance, improving liquidity profile, and enhanced financial flexibility across key businesses. The agency expects these trends to continue through FY27, supported by favourable commodity dynamics, improving cost structures, and strong earnings visibility across aluminium, zinc, and oil and gas businesses.

ICRA has also noted the strengthening of Vedanta's refinancing profile through lower borrowing costs, proactive debt repayments, and extension of debt maturities. This upgrade is a testament to the Group's continued efforts to strengthen its financial position and position itself for long-term success.