New Delhi : India’s leading credit rating agencies, Crisil Ratings and ICRA have reaffirmed the
Company’s credit ratings, underscoring continued confidence in Vedanta’s overall business
stability, healthy financial performance and strong adherence to corporate governance.
Significantly, the Crisil report notes that based on feedback from management and select
lenders, the rating agency “understands that currently there has been no adverse reaction
from any lender or investor.” The rating agency reaffirmed its long-term ratings of Crisil AAA
for Hindustan Zinc Ltd and Crisil AA for Vedanta. ICRA has reaffirmed its long-term rating at
AA.
The agencies’ assertion comes as a strong rebuttal to short seller Viceroy’s allegations that
had charged Vedanta Ltd’s parent, Vedanta Resources of structural subordination and
reliance on dividends to service debt.
The CRISIL report further said that stock prices for both Vedanta Ltd and Hindustan Zinc Ltd
have already recovered since the publication of the report.
“Crisil Ratings has taken note of the short-seller report on the Vedanta group, published on
July 9, 2025, and the subsequent intraday volatility in the share prices of Vedanta Limited
and Hindustan Zinc Limited. The Vedanta management in response, via its press release
dated July 9, 2025, has dismissed all the charges. Crisil notes that the stock prices for
Vedanta Limited (VEDL) and Hindustan Zinc Limited (HZL) have recovered since the report’s
publication,” the note said.
Crisil has ratings outstanding on 11 entities of the Vedanta group including Hindustan Zinc,
ESL Steel Ltd, Talwandi Sabo Power Ltd and Sesa Resources Ltd and ratings have been
reaffirmed for all.
“Crisil keeps all its outstanding ratings under continuous surveillance. The ratings of Vedanta
and its subsidiaries continue to be supported by the strength of the business risk profiles of
their Indian operations and healthy financial performance,” the note said.
Similarly, ICRA has drawn comfort from the Group’s stated commitment towards continued
debt reduction. The leverage (net debt/OPBDITA), including Vedanta Resources Limited’s
(VRL) debt, improved to 2.5 times in FY2025 compared to 3.2 times reported in FY2024.
Healthy profitability, particularly in the aluminium and zinc operations, is expected to further
support the Group’s leverage profile. Moreover, ICRA considers the total debt and financial
expenses of VRL to calculate the adjusted leverage and coverage metrics of Vedanta
Limited (VDL).
As per credit rating methodology, AAA rating signifies Instruments with this rating are
considered to have the highest degree of safety regarding timely servicing of financial
obligations. Such instruments carry lowest credit risk. Similarly, AA rating signifies
Instruments with this rating are considered to have high degree of safety regarding timely
servicing of financial obligations. Such instruments carry very low credit risk.
Therefore, the allegations made in the report regarding Vedanta’s unsustainable debt and
financial fragility are completely unfounded and lack any credible basis. Given that Vedanta’s
instruments carry the highest (AAA) and very high (AA) credit ratings, it clearly demonstrates
their robust financial health and exceptional capacity to meet their obligations on time. Such ratings unequivocally reflect the lowest levels of credit risk, firmly contradicting any claims of
vulnerability or instability. At Vedanta Resources Limited’s level, the recent refinancing of
debt has smoothened the maturity profile over the long tenure and is likely to reduce the
finance cost FY2026 onwards.
December 6, 2025
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