Indian rupee fall: Tata Steel, Vedanta Resources sit pretty, says Fitch Ratings

Aug 30 2013, 15:12 IST
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At the operating level most of Fitch rated portfolio of Indian industrial corporates are either naturally hedged via import parity-linked selling prices, or have hedging arrangements in place for more than 50% of their FX exposure. IE photo Prashun Talukdar At the operating level most of Fitch rated portfolio of Indian industrial corporates are either naturally hedged via import parity-linked selling prices, or have hedging arrangements in place for more than 50% of their FX exposure. IE photo Prashun Talukdar
SummaryNevertheless, credit profiles of corporates are likely to weaken over next 12 months: Fitch

stands at USD444m (48% of total debt) for BILT and USD8bn (70% of total debt) for TSL. Fitch will analyse the performance of these companies for any significant weakening of operations which, coupled with higher debt levels, may result in a downgrade.

In the case of Tata Motors (TML, BB/Stable), UK-based Jaguar Land Rover plc accounts for over 75% of its revenue and 90% of its EBITDA. As the proportion of TML's consolidated debt in FC currency is lower at 76%, the final impact from Indian rupee depreciation is likely to be positive.

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