Fitch rates Aegis BB-, Essar Services notes BB-

Fitch Ratings said it assigned Aegis Ltd. a long-term foreign-currency issuer default rating of BB-, along with Essar Services Mauritius' proposed five- to seven-year dollar-denominated senior notes an expected rating of BB-.

Essar Services is a 100% subsidiary of Aegis and the notes will be fully guaranteed by Aegis, Fitch said.

The outlook is stable.

Aegis is a major outsourcing solutions company with a presence in 10 countries across six continents, the agency said.

The ratings reflect its geographically and vertically diversified revenue streams with low client concentration risk, strong counterparties and a high degree of customer stickiness, Fitch said.

The ratings also consider lower foreign-exchange risks and lower concerns emanating from any anti-offshoring regulations as a majority of Aegis's revenues come from its on-shore operations, the agency said.

The ratings are constrained by Aegis's small size compared to other companies in the same or related industries, its limited track record of organic-based growth and volatility in operating margins, Fitch said.

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