Falling rupee credit negative for India Inc, impact to be limited: Moody's

Impact of the rupee's weakening will be diverse and will also depend on issues such as a particular company's reliance on exports, its cost base, and its exposure to pricing on international markets

Global rating agency Moody's Investors Service on Monday said that a sustained weakening of the rupee would be credit negative for its rated Indian companies.

It will have an adverse impact particularly on those entities that generate revenue in rupees but rely on US dollar debt to fund their operations and have significant dollar-based costs, including capital expenses.

"The Indian rupee hit a new low of Rs 72.1 to the US dollar on Thursday and has now weakened around 13 per cent since the beginning of 2018," said Annalisa DiChiara, Moody's vice-president and a senior credit officer, in a statement.

"Nevertheless,