Shares of mining giant Vedanta Ltd fell to a fresh 52-week low after the international credit rating agency Moody’s downgraded the corporate family rating (CFR) of its parent company Vedanta Resources Ltd (VRL). 

At 03:15 pm, Vedanta Ltd shares were trading at Rs 209.30, down over 6.5% from the previous closing price on the National Stock Exchange (NSE). The scrip hit a fresh yearly low of Rs 208.10, 8.8% lower than the last close. 

Moody’s Investors Service downgrades the CFR of Anil Agarwal-led VRL from Caa1 to Caa2, with the outlook remaining at ‘negative’ due to elevated concerns over the firm’s growing debt and risks of debt restructuring over the next few months. The Caa2 rating suggests that the company may struggle to meet its financial commitments.

The rating agency also downgraded its rating on the senior unsecured bonds issued by Vedanta’s parent company and those issued by VRL’s wholly owned subsidiary, Vedanta Resources Finance II Plc, and guaranteed by Vedanta Resources to Caa3 from Caa2.

Moody’s downgraded the ratings over investor concerns about Vedanta’s financial health and lack of meaningful progress on refinancing its upcoming debt maturities, particularly the $1 billion bonds maturing each in January 2024 and August 2024.