Fitch affirms HCL Infosystems

Fitch Ratings said it affirmed HCL Infosystems Ltd.'s national long-term issuer rating and Rs. 800 million non-convertible debenture at AA-(ind) and Rs. 1.25 billion fund-based working capital banking facilities and Rs. 23.8 billion non-fund-based working capital banking facilities at AA-(ind)/F1+(ind).

The outlook is stable.

The affirmations reflect HCL's established operations in the domestic information and communication technology industry, a strong HCL brand name and a wide distribution network, the agency said.

The ratings are supported by the recovery of the personal computer market in 2010 post economic slowdown and HCL's continuing leading market share in the enterprise desktop segment, the agency added.

The ratings are constrained by intense competition in the handsets and computing businesses, coupled with the trading nature of telecom distribution business, resulting in low EBITDA margins, Fitch said.

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