New Delhi, Dec 24 (PTI) Vedanta on Friday said India Ratings and Research (Ind-Ra) has revised the company's outlook to positive from stable.
Besides, the long-term issuer rating has been affirmed at 'IND AA-'.
The outlook revision reflects a likely improvement in the operational cash flow for FY22 and FY23 because of a significant increase in the operating profitability, led by enhanced volume performance, cost improvements across segments and a sharp recovery in metal prices, according to Ind-Ra.
"As such, the deployment of surplus cash to address structural subordination is unlikely to result in a material increase in the gross debt...leading to an improvement in the overall net financial leverage (net debt/EBITDA).
"Also, there is a favourable change in VDL's (Vedanta Ltd) group structure, led by VRL's (Vedanta Resources Ltd) increased stake of 69.7 per cent in VDL as of November 2021 from 50.1 per cent in November 2020," said Ind-Ra, which revised the outlook on Thursday.
The change in the group structure will reduce the dividend cash leakages and improve the financial flexibility of the group. PTI SID SID ANU
