According to the global credit rating agency, Vedanta Resources’ credit profile will not be taxed by the $20 billion semiconductor manufacturing company, as the investment will be made outside of the company.
“The business (semiconductor) will be run in a separate entity under the holding company of Vedanta Resources
Any potential impact on the creditworthiness of the planned investments in the semiconductor industry will depend on the details of the financing plan, which are yet to be released, the rating agency added.
“For example, we could guard against any change in Vedanta Resources’ dividend policy, to prevent debt repayment against
According to the rating agency, the
“Our rating on Vedanta Resources assumes no material exposure of the company or its principal subsidiary, Vedanta Ltd., to the semiconductor business in the next 12-24 months,” it said.
Working with Taiwanese group Foxconn, Vedanta recently signed an agreement with the government of Gujarat to set up a semiconductor company in the state.
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