Fitch affirms Infomedia

Fitch Ratings said it affirmed the F1+ (ind) national rating assigned to Infomedia India Ltd.'s INR250million commercial paper program.

The agency said that the rating factors in the strong presence of the company in the publishing space, its dominant market position in the directory service segment through its flagship product 'Yellow Pages' with a high retention rate, as well as the high margins generated by the publishing business process outsourcing segment.

While the directories business would exhibit normal growth with increasing penetration into new cities, growth in the special interest publishing division would be driven by expanding coverage and launch of new titles, Fitch noted, adding that the company's financial leverage has deteriorated in FY07, however, it expects the same to improve during FY08, driven by limited capex with free cash flows expected to be used for debt reduction.

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