Fitch affirms India Infoline program

Fitch Ratings said it affirmed the national short-term rating of India Infoline Ltd.'s short-term debt program at F1(ind) for an enhanced size of Rs. 1.5 billion.

The agency said that the rating reflects its improved capitalization, increasingly diversified income streams, strong business growth on the back of a buoyant domestic equity market and robust risk management systems.

The rating also takes into account the cyclical nature of the company's primary business of equity broking, Fitch added.

The agency noted that although India Infoline's profitability is high, its fixed costs, which grew to 38% of total income in fiscal 2006, are expected to rise further in fiscal 2007, driven by branch expansion and recruitment.

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