Fitch rates IBM India loans AAA(ind), F1+(ind)

Fitch Ratings said it assigned a national issuer rating of AAA(ind) to IBM India Pvt. Ltd., along with an AAA(ind) rating on its long-term fund-based working capital facility of Rs.3,000 million and F1+(ind) on fund-based and non-fund based working capital facility (interchangeable) of Rs.6,000 million.

The outlook is stable.

The ratings draw strength from the strong strategic linkage enjoyed with its parent entity, International Business Machines Corp. Inc., which is rated A+ with stable view, Fitch said.

While there are no legal ties between IBM and IBM India, the strategic and operational linkages outweigh this and Fitch said it believes that IBM would support IBM India if the need arises.

The ratings also recognize IBM India's established position in the domestic market with a well-established brand name and moderate financial profile, the agency said. The ratings assigned remain constrained by India's sovereign foreign-currency rating of BBB-, Fitch added.

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