Moody's Investors Service in it statement say  that Vedanta Resources Limited's (VRL)  failed attempt to take full ownership of its profitable operating subsidiary Vedanta Limited will weaken liquidity, a credit negative that on 20 October led Moody's to place VRL's ratings under review for downgrade. A Moody's Vice President and Senior Credit Officer, Kaustubh Chaubal, says "Without operations of its own, VRL  needs to refinance debt maturities at a time of tight capital market liquidity, putting undue pressure on key subsidiaries to upstream cash," "Governance risk also remains high, with share pledges, persistently weak liquidity and large imminent refinancing needs reflecting an aggressive financial strategy and high-risk appetite,"

As of March 2020, around USD 7.5 billion i.e 50pc of the group's total consolidated reported debt was set to come due through March 2022, including USD2.5 billion at VRL and USD425 million at its sole shareholder Volcan Investments. The group's consolidated credit metrics remain far stronger than economic reality. VRL fully consolidates partially owned operating subsidiaries, including 50.1 pcowned VDL and VDL's 64.9pc-owned subsidiary, Hindustan Zinc Limited (HZL). However, the holding company's earnings available for debt servicing are limited to the extent the operating subsidiaries distribute their surpluses in the form of dividends.

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