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S&P also affirmed its ‘BBB’ rating on TCS on the back of a good operating performance despite the global slowdown
Credit ratings agency Standard & Poor's (S&P), has said that it has affirmed Tata Consultancy Services Ltd’s long-term corporate credit rating to ‘BBB’ and revised the company’s outlook to ‘positive’ from ‘stable’.
S&P said that it expects the company's revenue, which was steady during the downturn, to register moderate growth, going forward. “Growth will be fuelled by the global economic revival and our expectation that India-based IT service providers will continue to benefit from higher outsourcing," said Suzanne Smith, S&P's credit analyst and managing director, corporate and government ratings, for South and Southeast Asia.
TCS derives more than 90% of its revenue from overseas contracts, while its operating expenses are largely denominated in local currency, the ratings agency said.
S&P said that the positive outlook reflects its expectation that TCS’s operating performance would improve with a revival in the global economy. It also reflects the ratings agency’s view of the resilience and flexibility of the company's operating performance during the economic crisis, it added.