Infosys Technologies rating upgraded

The long-term debt rating of Infosys Technologies (Infosys) has been upgraded from AA (double A) to AAA (triple A).

The rating, P1 plus (P one plus), assigned to Infosys' commercial paper programme has been reaffirmed.

The rating reflects the strong growth prospects and profitability margins of the software exports business in India, founded upon the strength of the world's second largest pool of high-quality, English-speaking technical personnel, low manpower costs in relation to developed nations and the booming demand for software applications across the world.

While Infosys will continue to face challenges in managing consistently high growth rates, rapid changes in business mix owing to technology shifts, high manpower attrition rates and geographic risks, the rating agency believes that the management has instituted sound risk mitigation strategies and has demonstrated its ability to manage these risks over the last few years.

Infosys' risk profile is bolstered by healthy financial parameters. Strong profitability (net income of Rs. 290 crores on revenues of Rs. 920 crores in 1999-2000) and sound receivables management result in healthy cash flows. Infosys' balance-sheet is debt-free with cash and equivalents accounting for a majority of the assets.

Send this article to Friends by E-Mail

Section  : Business
Previous : P1 plus rating for Britannia Industries
Next     : Alcatel's debt programme gets A1 plus