Moody's rates Sterlite B1

Moody's Investors Service said it assigned a B1 corporate family rating to Sterlite Technologies Ltd.

This is the first time that Moody's assigned a rating to Sterlite, the agency noted.

The outlook is stable.

The B1 rating reflects Sterlite's position as a leading manufacturer of optic fiber and optic fiber cable in India and its growing presence internationally, primarily China, Moody's said.

Rapid growth in demand for data services is driving investment in telecom infrastructure globally, which benefits optical fiber manufactures such as Sterlite, the agency said.

Growing demand for optic fiber in India reflects the rapid growth in data consumption, the proliferation of low-cost smartphones, network roll-outs and upgrades by telecommunications operators, Moody's said.

However, the company's small scale provides limited ability to absorb revenue shortfalls, lower capacity utilization or increased levels of working-capital intensity, the agency said.

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