negative impact on a number of key credit metrics including financial leverage.
The ratings of TSL and Ballarpur Industries Ltd (BILT, BB-/Negative) are already on Negative Outlook due to operational weakness and capex, and hence have limited headroom to cope with FX-induced higher debt levels. FC-denominated debt currently 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.