IT-BPOs

S&P lowers outlook for Infosys, TCS, Wipro to negative

  • IANS, New Delhi
  • |
  • Updated: Apr 25, 2012 08:09 IST

Rating agency Standard & Poor's (S&P) on Wednesday revised outlook for three top Indian information technology companies -- Infosys, Tata Consultancy Services (TCS) and Wipro -- to negative from stable.

At the same time, it affirmed its 'BBB+' long-term corporate credit ratings on these entities.

"Our ratings on Indian information technology companies reflect our 'BBB+' transfer and convertibility (T&C) assessment of India. We could lower the ratings on these companies if we revise downward our T&C assessment," S&P said in a statement.

At the Bombay Stock Exchange, the Infosys scrip ended flat at Rs. 2,348.80 while TCS closed 1.92% down at Rs 1,172.30.

The scrip of India's third largest IT company fell 7.29% at Rs.410.15 after it reported muted guidance for the April-June quarter.

The outlook revisions followed a similar action on the sovereign credit rating on India by the agency which warned of a ratings downgrade citing deteriorating economic indicators and slow progress on fiscal reforms in the backdrop of a "weakened political setting".

 

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