S&P assigns higher ratings to Infosys than India
By agencies   |   Monday, 04 April 2005, 19:30 IST
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SINGAPORE: Standard & Poor's Ratings Services Monday assigned its stable 'BBB-' foreign currency and 'BBB' local currency ratings to Infosys Technologies Ltd. "The corporate credit rating on Infosys has for the first time in India, been higher than the sovereign ratings on India (BB+/Stable/B). This reflects Infosys' very conservative financial profile and policy, which feature ample liquidity, strong operating cash flow, and a debt-free balance sheet," said Standard & Poor's credit analyst Greg Pau, director in the Corporate and Infrastructure Ratings Group. "Infosys' good track record in the industry, its strategy of funding expansion through internal cash resources, and good debt capacity should allow the company to maintain a strong financial profile in the case of more adverse business conditions," he added. With over 70 percent of its professionals based in India, the company has benefited from its skilled but relatively low cost workforce. This cost advantage enables Infosys to offer competitive prices, while maintaining a superior EBITDA margin, compared with its global competitors.

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