Moody's lifts Amdocs view to positive

Moody's Investors Service said it affirmed Amdocs Ltd.'s Baa3 rating and revised the outlook to positive from stable to reflect the company's continued business growth, strong liquidity and substantial market share within the telecommunications third-party customer care and billing segment.

Amdocs' Baa3 rating reflects the company's strong financial strength due to its low financial leverage and ample liquidity as well as its considerable size and profitability as measured by its returns and pretax income levels, the agency said.

Although many of Amdocs' financial metrics suggest an A2 rating, the rating is constrained by its business profile, including the company's limited product line diversity and its high telecommunications sector client concentration, Moody's said.

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