India Ratings upgrades Runaya's credit rating

4 Aug 2022 , 03:32 PM

Ratings agency, India Ratings and Research has upgraded the long term credit rating of Runaya Refining to IND BBB + from IND BBB. The outlook given on the rating is Positive. Short term credit rating of the company has been upgraded to IND A2. The ratings agency has said that it has upgraded the ratings of Runaya on the basis of improvement in its net leverage position in both the financial year 2022 and in the first quarter of financial year 2023. Improvement in net leverage means that net debt of the company has gone down. The ratings agency has said that dross processing volume and operating profitability of Runaya have improved.

Runaya Refining is part of Vedanta Group. Dross is a waste byproduct that is generated in the process of smelting of Aluminum. Runaya refines this dross further to extract Aluminum. It also manufactures Aluminum Oxide briquettes from waste that is produced at Vedanta’s aluminum smelting plant.