Debt, page-3

Debt ratios are currently roughly at about at a 10x ICR - i.e. EBIT covers interest (I used finance costs - so interest would actually be lower) if you lowball and just adjust and double their prediction for the coming half. Obviously a low ball half as well. If they have a covenant based on ICR - it is probably down at 2.5 to 3.5x or so. (I have used quick and dirty numbers here for simplicity).

The vast majority of the debt was in USD as at the last Annual report. 60% of receivables also was in USD. As Aussies want as much franking as possible, it possibly makes sense for most debt to be in USD against US subsidiaries. (Also the int rate is under 2%).

As there is a natural hedge in place with the US subsidiaries - they don't appear to need to hedge really. The goodwill and assets that are denominated in USD probably reduce the risk of any mismatch. The US was about 50% of Ebit in 2014. It might be higher with the AUD down so far this year.

I think the fall in SP is more due to the outlook for their market segments than any concerns about finance risks.