Datamatics ratings downgraded

The pfA plus (pf single A plus) rating assigned to the preference share issue and the FA plus rating assigned to the fixed deposit programme of Datamatics have been downgraded to pfBBB (pf triple B) and FA minus respectively. The rating revision reflects the decline in the market position of Datamatics due to reduction in business contributed by existing clients and the resulting impact on the company's profitability. It also reflects the relatively high proportion of debt in the company's funding mix. The rating also factors in the expertise of the company in core technical areas, relatively low employee turnover and presence of adequate infrastructure facilities for offshore development.

Datamatics is the flagship company of the Datamatics group, engaged in providing software development and services in areas such as manufacturing, transportation, telecom and MIS.

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Section  : Business
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