S&P rates HT Global notes BB-

S&P said it assigned a BB- long-term corporate credit rating to HT Global IT Solutions Holdings Ltd.

The agency also said it assigned a BB- rating to the company’s proposed senior secured notes of up to $300 million.

HT Global owns 71% of Hexaware Technologies Ltd. and is wholly owned by Baring Asia Private Equity Fund V LP.

The outlook is stable.

The ratings reflect the company’s small size in the fragmented IT software and services industry, S&P said, and its high geographical and customer concentration.

IT Global’s good quality clients and above-industry average EBITDA margins temper these weaknesses, the agency said.

The company’s India-based delivery model also provides it with access to highly skilled resources at a lower cost, supporting its business risk profile, S&P said.

The ratings also consider that the Baring Asia-led management control of HT Global could potentially result in a higher leverage from changes in financial policy, the agency added.

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