The USD 561 million investment by Vedanta's wholly owned subsidiary, Cairn India Holdings Limited, resulted in Moody's changing its outlook on Vedanta's ratings to negative in February. Vedanta Resources Limited currently has a Ba3 negative rating. "We assess Vedanta's credit profile on a standalone basis without influence from its parent, but in light of the investment, Vedanta's separation from Volcan could become blurred," says Kaustubh Chaubal, a Moody's Vice President and Senior Credit Officer. Volcan has a USD 900 million loan repayable over the next three years, and if this repayment responsibility falls to Vedanta, Moody's expects its liquidity to weaken. "The transaction was not what we typically expect of high-profile Ba-rated issuers such as Vedanta, and further similar transactions could cause us to review Vedanta's governance and pressure its Ba3 rating," says Chaubal.