Vedanta’s Credit Rating Reaffirmed by CRISIL and ICRA

New Delhi,  India’s premier credit rating agencies, CRISIL Ratings and ICRA, have reaffirmed Vedanta Limited’s credit ratings, underscoring continued confidence in the company’s overall business sustainability, robust financial performance, and steadfast commitment to corporate governance.

CRISIL has reiterated its long-term rating of AAA for Hindustan Zinc Limited (HZL) and AA for Vedanta Limited (VEDL), stating that no adverse reactions have been observed from any lenders or investors. Similarly, ICRA has reaffirmed its long-term rating of AA for Vedanta.

This endorsement serves as a strong rebuttal to allegations by short-seller Viceroy, who had claimed structural subordination and over-reliance on dividends for debt repayments at Vedanta Resources Limited (VRL), Vedanta’s parent company.

CRISIL noted that following the release of Viceroy’s report on 9 July 2025 and the resulting intraday volatility, both VEDL and HZL share prices have stabilized. Vedanta management had issued a press release the same day, refuting all allegations, which CRISIL took into account during its rating review.

CRISIL continues to monitor 11 entities within the Vedanta Group—including ESL Steel, Talwandi Sabo Power, and Sesa Resources—and has reaffirmed ratings for all of them. The agency highlighted that these ratings are underpinned by strong operational risk profiles and solid financial metrics of the Indian operations.

ICRA also expressed satisfaction with the group’s ongoing commitment to deleveraging. VRL’s net debt/OPBDITA ratio improved from 3.2x in FY2024 to 2.5x in FY2025, driven notably by strong profitability in aluminum and zinc businesses.

ICRA considers the total debt and financial costs of VRL while evaluating VEDL’s adjusted leverage and coverage metrics, further supporting its reaffirmed ratings.

According to the credit rating methodology:

AAA ratings indicate the highest degree of safety regarding timely servicing of financial obligations, with minimal credit risk.

AA ratings indicate very high safety and very low credit risk.

These reaffirmations confirm that allegations regarding Vedanta’s debt vulnerability and financial fragility are unfounded, lacking any credible basis. The high credit ratings serve as a clear indicator of Vedanta’s strong financial health and extraordinary ability to meet obligations on time, contradicting any notions of instability or risk.

At the parent level, the recent refinancing of VRL’s debt has helped smoothen its maturity profile and is expected to lower interest costs post-FY2026.