Infosys Technologies Ltd has become the first company in India to obtain BBB rating, higher than the country's sovereign rating (BB+/Stable/B), from global credit rating agency Standard & Poor's, reflecting the company's strong financial profile.
"S&P has assigned Infosys a credit rating higher than the agency's sovereign rating on India. Infosys has obtained 'BBB' in local currency and 'BBB-' in foreign currency rating," the company informed the Bombay Stock Exchange on Monday.
The outlook is stable for Infosys and takes into account S&P's expectation that the company would maintain its competitive position and strong financial profile, and that it would manage the expansion risks inherent in its growing global operations, it added.
According to S&P, this reflects the company's very conservative financial profile and policy, which feature ample liquidity, strong operating cash flow and a debt-free balance sheet.
"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," S&P credit analyst Greg Pau said.
"Indian companies are globalising rapidly and a good credit rating is a competitive advantage. This rating proves the Indian industry is coming of age globally," according to Infosys chief financial officer T V Mohandas Pai.