Rated Indian infrastructure firms most exposed to currency risk: S&P

Much of corporate portfolio has dollar-linked revenue and is not exposed to rupee depreciation

Infrastructure entities are most exposed to currency risk among Indian corporates, said rating agency Standard and Poor’s (S&P) on Thursday.

Renewable energy players in particular have high capex spending and heavily rely on dollar debt. Over the next 12 months, rated Indian renewable companies will likely have to raise funds equal to nearly one-third of their existing debt. The agency did not quantify amounts.

These companies will need capital for capex targets and refinancing. They should be able to raise funds domestically, rather than using high-cost offshore debt, S&P said in a report called ‘Asia-Pacific's Strong-Dollar Problem: Inconvenience Today, Headache