S&P gives Genpact notes BBB-

S&P said it affirmed its BBB- long-term corporate credit rating on Genpact Ltd.

The outlook is stable.

At the same time, the agency assigned a BBB- long-term issue rating to the $350 million senior unsecured notes due 2022 that Genpact Luxembourg Sarl proposes to issue. Genpact will guarantee the notes.

S&P also affirmed the BBB- long-term issue rating on the $800 million senior unsecured term loan and the $350 million revolving credit facility due 2020 that Genpact International Inc. issued.

"We affirmed the rating because we expect Genpact to maintain its good position in the fragmented global BPO space over the next 12-24 months," S&P credit analyst Ashutosh Sharma said in a news release.

"We anticipate that the company's steady cash flows will help keep its leverage at moderate levels despite higher shareholder distributions."

In the agency’s view, Genpact's niche and more profitable India-based delivery model offsets the impact of the company's lower revenue than global peers such as Cap Gemini SA and Computer Sciences Corp. Genpact's steady recurring revenue, strong customer relationships and reasonable organic revenue growth also underpins its business risk profile, S&P explained.

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