Infy rated better than India's Sovereign Rating by S&P
Infy has become the first company to get rating higher than Sovereign ratings. Amazing!!!! Read the article given in TOI.
This article is taken from Times of India. http://timesofindia.indiatimes.com/articleshow/1068984.cms
SINGAPORE: Standard & Poor's Ratings Services on Monday assigned its 'BBB-' foreign currency and 'BBB' local currency ratings to Infosys Technologies Ltd with a stable outlook. "The corporate credit rating on Infosys from S&P is 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. Back in 2002, ICICI Bank got a rating higher than the country from Moody's. "Infosys' good track record in the industry, its strategy of funding expansion through internal capacity should allow the company to maintain a strong financial profile in the case of more adverse business conditions," he added. Infosys is one of the top three IT service providers in India, with revenue at USD 1.14 billion in the nine-month period ended December 31, 2004. About 98 per cent of its revenue is generated from overseas assignments... ...through a global network of development centres in 22 cities and sales offices in 30 cities. With over 70 per cent of its professionals based in India, it has benefited from its skilled but relatively low cost workforce. This cost advantage enables Infosys to offer competitive prices, while maintaining a superior margin, compared to global competitors. Service quality has been good, as indicated by on-time, and on-budget delivery of over 90 per cent of projects. Infosys is, however, exposed to a degree of sovereign risk, as its workforce is located primarily in India, and as its foreign-earned revenue is required to be repatriated under India's current foreign exchange regime. Nevertheless, Infosys is partly insulated from country risks due to its largely offshore sources of revenue and very conservative financial policy. However, Infosys has no immediate plans to raise debt, though it sought an international credit rating, its chief financial officer Mohandas Pai said. "It helps in risk management and in benchmarking with global competitors," Pai added.
This article is taken from Times of India. http://timesofindia.indiatimes.com/articleshow/1068984.cms
SINGAPORE: Standard & Poor's Ratings Services on Monday assigned its 'BBB-' foreign currency and 'BBB' local currency ratings to Infosys Technologies Ltd with a stable outlook. "The corporate credit rating on Infosys from S&P is 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. Back in 2002, ICICI Bank got a rating higher than the country from Moody's. "Infosys' good track record in the industry, its strategy of funding expansion through internal capacity should allow the company to maintain a strong financial profile in the case of more adverse business conditions," he added. Infosys is one of the top three IT service providers in India, with revenue at USD 1.14 billion in the nine-month period ended December 31, 2004. About 98 per cent of its revenue is generated from overseas assignments... ...through a global network of development centres in 22 cities and sales offices in 30 cities. With over 70 per cent of its professionals based in India, it has benefited from its skilled but relatively low cost workforce. This cost advantage enables Infosys to offer competitive prices, while maintaining a superior margin, compared to global competitors. Service quality has been good, as indicated by on-time, and on-budget delivery of over 90 per cent of projects. Infosys is, however, exposed to a degree of sovereign risk, as its workforce is located primarily in India, and as its foreign-earned revenue is required to be repatriated under India's current foreign exchange regime. Nevertheless, Infosys is partly insulated from country risks due to its largely offshore sources of revenue and very conservative financial policy. However, Infosys has no immediate plans to raise debt, though it sought an international credit rating, its chief financial officer Mohandas Pai said. "It helps in risk management and in benchmarking with global competitors," Pai added.
posted by coolsun @ 4:42 AM
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