Operating exposure

Operating exposure

Degree to which exchange rate changes, in combination with price changes, will alter a company's future operating cash flows.

Operating Exposure

The extent to which a company is exposed to exchange risk and inflation risk. That is, operating exposure is the exposure to the risk that a change in an exchange rate or the inflation rate will negatively impact a company's revenue.
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The rating is also supported by the company's relatively strong product diversification, both locally within the Kuwaiti market and in addition geographical diversification through the company's operating exposure outside of Kuwait.
With more operating exposure to these markets, which often come with capital controls and other complexities, treasurers face greater challenges in funding and risk management.
It is more appropriate to measure exposure of their operating cash flows, and net cash flows to various currencies, known as FX operating exposure and FX Net cash flow (NCF) exposure respectively.
Furthermore, we reduce the average age of our fleet and concentrate our operating exposure in dry-bulk market segments that, in our view, enjoy somewhat better fundamentals with lower freight rate volatility.
Large differences in the investment responses of affiliates and local firms persist after including measures of operating exposure as controls.
In addition to the regulatory and operating exposure tied to Clinton (57% of IP's total assets), IP is exposed to market risk due to the elimination of the fuel adjustment clause.
Expands on the treatment of parity disequilibria to include exchange rate expectations that differ from parity and a project's operating exposure to currency risk
Credit concerns relate to DE's high costs of electric generation, which could result in revenue pressure as DE moves to an open access environment, and nuclear operating exposure.
ATL does face operating exposure to Delta and its affiliates, which accounts for over 75% of total passengers and contributes to the high level of connecting passenger traffic.
Credit concerns center on the nuclear operating exposure (nuclear generation accounts for 25% of total energy mix) and the greater business risk of FPL Group, Inc.
Credit concerns center on ATL's operating exposure to Delta and its affiliates, which accounted for 76% of total enplanements in fiscal 2010; the high level (68%) of connecting or transit passenger traffic; and the expectation of moderate declines in coverage levels relative to past performance as a result of its plan of leveraging from both the general airport revenue and PFC hybrid credits.
Credit concerns center upon DE's relatively high costs of electric generation, which could result in revenue pressure as DE moves to an open access environment, and nuclear operating exposure.
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