New Delhi, Dec. 11 -- Global credit rating agency Fitch Ratings on Thursday flagged that failure to sufficiently hedge foreign-exchange (FX) exposure could exert pressure on credit ratings for certain Indian corporates, particularly those with significant vulnerability to rupee depreciation.

The report noted "In sectors with significant vulnerability to rupee depreciation, we anticipate that a hypothetical failure by issuers to substantially mitigate foreign-exchange (FX) risks through hedging could put downward pressure on ratings."

In a press commentary, Fitch said that while the majority of Indian companies in its rated portfolio either have natural hedges through local currency revenues or have adopted robust hedging practices for f...