Vedanta Resources Ltd has debt servicing obligations of about $3 billion, including interest, in the current fiscal, S&P Global Ratings said on Monday.

The ratings agency estimated the Anil Agarwal-led company will likely have enough liquidity until December 2023.

“Vedanta Resources Ltd will likely have enough liquidity until December 2023. The group is close to securing about $1 billion of funding at one of its operating companies,’’, the ratings agency said in a bulletin.

“The India-based natural resource company has debt servicing obligations of about $3 billion, including interest and inter-company loans. It will have at least another $1 billion obligations that require funding until March 2024,’’ S&P said.

Vedanta Resources is the parent company of Vedanta Ltd which declared a fifth interim dividend for the 2022-23 fiscal last month.

S&P said its B- rating on Vedanta Resources with a stable outlook reflects its expectation the company will secure additional funds to support liquidity beyond December 2023.

The company is discussing with banks and investors on multiple funding options for at least another $2 billion.

“Successful closure of some of these discussions will facilitate the payment of its $1 billion bond due January 2024. Failure to demonstrate a credible refinancing plan at least six months before the bond maturity could lead to downside rating pressure,’’ S&P noted.

It pointed out that Vedanta Resources’ funding initiatives are supported by its capacity to borrow at its subsidiary, Twin Star Holdings Ltd. The latter directly owns a 46 per cent stake in the operating company, Vedanta Ltd.

According to S&P, Vedanta Resources has been more successful in the past in raising debt at the Twin Star-level, given the structural seniority of Twin Star debt to Vedanta Resources debt.

S&P, however, noted Vedanta Resources will become more dependent on external funding and this is due to declining cash at the company’s operating subsidiaries, which has generally been a source of credit strength.

The rating agency estimated that Vedanta Ltd had consolidated cash of about $2.5 billion as of March 31, 2023, down from around $4 billion as of March 31, 2022. The company will use $930 million of this to pay dividends in April.