Fitch: HT Global notes BB-

Fitch Ratings said it assigned long-term foreign-currency and local-currency issuer default ratings of BB- on HT Global IT Solutions Holdings Ltd.

The outlook is stable.

The agency also said it assigned an expected BB- rating to the company's proposed dollar-denominated senior secured notes.

The notes are secured by Baring Asia Private Ltd.’s equity stake in HT Global, Fitch said.

HT Global owns a 71.3% stake in Hexaware Technologies Ltd., the agency said.

The notes are rated in line with HT Global’s long-term foreign-currency issuer default rating as they will represent direct, unconditional, secured and unsubordinated obligations of the company, Fitch said.

The proceeds from the proposed senior secured notes will be used to refinance HT Global’s existing debt and to prefund 24 months of interest on the proposed bond, the agency said.

The notes will be subordinated to any potential future debt at Hexaware or other operating subsidiaries, Fitch said.

The ratings reflect its mid-tier position in the global IT services industry, relatively small scale and modest cost and technology advantage over its peers, the agency said.

The ratings are supported by the moderate to high costs to its customers to switch to competitors, diversified revenue stream in terms of products and industries served, Fitch said, and its profitable niche with a solid base of customers willing to work with the company on a recurring basis.

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