Infosys has been assigned A3 local-currency senior unsecured credit rating with a Stable Outlook by Moody’s Investor Service (Moody’s), the well-known global rating agency.
Given Infosys’ international revenue base and strong financial profile, Moody’s has rated the IT giant two notches higher than the Government of India, said a press release.
Moody’s stated that its rating is based on Infosys’ status as one of the world’s leading information technology (IT) consulting and services companies, with diversified operations across multiple business segments and geographies, industry-leading profitability and a solid balance sheet.
The stable outlook on Infosys’ ratings takes into account solid liquidity, a debt-free balance sheet, strong operating metrics, a robust business model and Moody’s expectation that its competitive strength will be retained.
“The rating by Moody’s is a testimony to the resilient global business model of Infosys which has delivered consistent business outcomes over the years. The rating underscores the company’s strategic direction of helping our clients navigate the next in their journey. This is reflective of the company’s robust financial position, healthy cash flow and industry leading financial performance,” said MD Ranganath, Chief Financial Officer.
Infosys has an existing rating of A- from Standard & Poor’s (S&P’s) Ratings Service. With Moody’s and S&P’s ratings, Infosys will now enjoy dual investment grade ratings, which are higher than India’s sovereign ratings from both the above agencies.