Most Indian firms under-hedged, vulnerable to currency risk: India Ratings

54 companies with huge exposure, were vulnerable given only 35% of their balance sheets were hedged

Most Indian companies with overseas debt have not hedged enough of their foreign currency risk, making them vulnerable to any sharp movements in the rupee, according to a study by credit ratings agency India Ratings.

The study of 100 companies holding 19.5 trillion rupees ($286.30 billion) of debt abroad as of March 2016, showed 54 of them, with 14.5 trillion exposure, were vulnerable given only 35 per cent of their balance sheets were hedged, India Ratings, a unit of Fitch, said on Tuesday.

Of those 54 companies, 42 holding 8.9 trillion rupees in foreign currency debt could see their credit profiles "weaken