Fitch upgrades Vedanta Resources outlook to positive

NEW DELHI: Fitch Ratings today revised the outlook on mining major Vedanta Resources to positive from stable citing strong market position and possibility of improved cash flows in the near term.

In a statement, Fitch said Vedanta Resources' outlook has been revised to positive from stable.

"The outlook revision reflects Fitch's expectation that Vedanta will be able to deleverage from FY13 onwards from its FY12 level," it noted.

According to Fitch, this is mainly due to execution of a large part of its capex plans, which should lead to positive free cash flow generation even if metal prices remain soft.

The agency has affirmed the company's long-term foreign currency issuer default rating at 'BB+' and the senior unsecured debt rating at 'BB'.