MUMBAI: Sliding rupee is credit negative for many companies with overseas borrowings, but many of them are covered by natural hedges and can withstand another 10per cent fall, said Moodys Investor Services.Most rated Indian corporates have protections such as natural hedges, US dollar revenue and financial hedges in place to limit the damage of a further potential 10per cent weakening of the rupees, said Annalisa DiChiara, a Moodys vicepresident and senior officer.Indian Rupee has fallen 13 per cent against the US dollar this year making it the worst performer in Asia as foreigners pull out funds and Indias current account deficit, the excess of imports over exports, surges.
The rupee fell on Monday to a historic low of Rs 72.67 per dollar.The impact of the rupees weakening will be diverse and depend on issues such as a corporates reliance on exports, its cost base, and its exposure to pricing on international markets, added DiChiara.