Vedanta Ratings Affirmed Despite Short-Seller Report

ICRA and CRISIL have reaffirmed their rating decisions for Vedanta Ltd, despite a recent short-seller report highlighting alleged financial gaps and unsustainable group structure. The ratings are supported by the strength of the business risk profiles of Vedanta's Indian operations and healthy financial performance. Both agencies have taken note of the report but have not seen any adverse reactions from lenders or investors. They will continue to monitor the impact of recent developments on Vedanta's financial flexibility.

New Delhi, Jul 02, 2025: Rating agencies ICRA and Crisil have reaffirmed their credit ratings for Vedanta Ltd, highlighting the company's strong business stability and healthy financial performance. This comes despite a recent short-seller report alleging financial gaps and an unsustainable group structure. The ratings reflect the resilience of Vedanta's operations and the confidence of lenders and investors.

ICRA has reaffirmed Vedanta's long-term rating at AA, while Crisil has reaffirmed its long-term rating of AA for Vedanta and AAA for Hindustan Zinc Ltd. Both agencies have noted the recent short-seller report by Viceroy Research but have not observed any adverse reactions from lenders or investors. They continue to monitor the impact of recent developments on Vedanta's financial flexibility.

Vedanta's financial performance, particularly in its aluminium and zinc operations, has been cited as a key factor in the reaffirmation of the ratings. The company's leverage ratio has improved, and its recent refinancing has smoothed the debt maturity profile, reducing finance costs from FY 2026 onwards. ICRA and Crisil have also noted Vedanta's commitment to ongoing debt reduction and healthy profitability.

The short-seller report, published by US-based Viceroy Research, has been dismissed by Vedanta as "selective misinformation and baseless" allegations aimed at discrediting the group. The company has stated that the report contains information already in the public domain but attempts to sensationalize the context.

Proxy advisory firm InGovern has defended Vedanta's holding structure, stating that it is common in capital-intensive sectors and is a legitimate practice. InGovern has cautioned investors against short-seller reports, highlighting that they often reflect the financial interests of their authors and may present negative interpretations of public data.

The ratings reaffirmation by ICRA and Crisil underscores the confidence in Vedanta's business stability and financial performance, despite the recent short-seller report. Both agencies will continue to monitor the impact of recent developments on Vedanta's financial flexibility.

References:
[1] https://money.rediff.com/news/market/vedanta-s-credit-rating-reaffirmed-by-crisil-icra/30396620250718
[2] https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/crisil-icra-reaffirm-credit-rating-underscore-confidence-in-business-stability-says-vedanta/articleshow/122768613.cms
[3] https://m.economictimes.com/industry/indl-goods/svs/metals-mining/crisil-icra-reaffirm-credit-rating-underscore-confidence-in-business-stability-says-vedanta/articleshow/122768613.cms
[4] https://economictimes.indiatimes.com/markets/stocks/news/vedanta-shares-in-focus-as-viceroy-criticizes-agm-ingovern-defends-group-structure/articleshow/122483402.cms