Reuters | | Posted by Yagya Sharma

Shares of Indian conglomerate Vedanta fell to their lowest in over a year on Wednesday after Moody’s Investors Service downgraded parent Vedanta Resources’ senior unsecured bonds, citing a high risk of debt restructuring in the coming months.

A man walks past the logo of Vedanta outside its headquarters in Mumbai, India, January 31, 2018.(REUTERS)

The rating agency also raised concerns about the ability of Vedanta Resources’ operating subsidiaries to generate cash flow in a “softening commodity price environment.”

Shares of the metals-to-oil group fell as much as 6.3% to their lowest level since July 6, 2022 before paring losses to trade 4.8% down as of 10:00 a.m. IST.

Moody’s downgraded Vedanta Resources’ unsecured bonds to Caa3 from Caa2, and the corporate family rating of the billionaire Anil Agarwal-owned company to Caa2 from Caa1 while maintaining a negative outlook.

Vedanta was the top loser on the Nifty 100 index , which was down 0.26%.

The stock is on track to decline for the sixth consecutive session – its longest losing streak since late February – if the trend holds through the day.

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