Debt-ridden Vedanta Resources Ltd. was downgraded to selective default by S&P Global Ratings after the company struck a deal with creditors to extend the maturities of its three-dollar bonds.

The undesirable-rated mining company said last week that its bondholders approved the changes after months of negotiations to resolve more than $3 billion worth of bonds maturing in 2024 and 2025. Under the deal, the company will pay $779 million up front and the maturity date of the remaining principal will be extended by as much as four years.

“We view the transaction as problematic under our criteria,” the ratings agency said in a statement Friday. The agency also “downgraded the company’s bond ratings due January 2024, August 2024 and March 2025 to ‘D’ from ‘CC’.”

The heavy debt load accumulated from a series of acquisitions has been a burden on the group controlled by billionaire Anil Agarwal. It has already reduced borrowings by about $3 billion. Indian subsidiary Vedanta Ltd. also announced plans to split and spin off parts of its business.