Credit rating not impacted, says S&P
Most of its rated Indian corporates can withstand the recent sharp depreciation in the Indian rupee because the share of US-dollar linked earnings largely balance the share of dollar-denominated debt.
Stating this, S&P Global Ratings said there are some exceptions: a few companies are vulnerable to a weaker rupee, while exporters could benefit.
The rupee fell beyond Rs70 to the dollar to an all-time low on 17 Aug 2018.
A weaker and more volatile rupee would likely result in increased hedging costs for companies.
A few rated Indian corporates will be negatively affected, but not severe enough to impact the credit rating.
These companies tend to have a greater share of foreign currency debt compared to their share of foreign currency earnings.
Export-focused sectors could see a credit benefit, including IT services and pharmaceuticals. fiinews.com
