S&P Global Ratings placed Vedanta Resources' ratings on CreditWatch with positive implications, amid the company's potentially improved capital structure due to a proposed fundraising.

The ratings included in the action are Vedanta Resources' B- long-term foreign currency issuer credit rating and the CCC+ long-term issue ratings on several US dollar senior unsecured notes.

The London-based mining company's refinancing of $1.2 billion of bonds due 2027 and 2028 will remove the risk of a maturity wall in April 2026, the rating agency said in a Wednesday release.

The issuance does not have an acceleration clause, which eases a significant credit risk, S&P said.

More debt headroom following the fundraising will also lessen the company's refinancing risk, the rating agency said.

However, the company's limited access to cash flows at its operating subsidiaries and funding access sensitivity weigh on its credit profile.

Meanwhile, the rating agency assigned a preliminary B- long-term rating on Vedanta Resources Finance II's proposed senior unsecured notes, whose proceeds will be used to refinance the maturities of the bonds due 2027 and 2028.

Vedanta Resources and its subsidiaries will guarantee the notes.

After the transaction, S&P expects to upgrade the company's issuer credit rating to B.

Vedanta Resources is the parent of India-based mining company Vedanta (NSE:VEDL, BOM:500295).

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