Bulletin: Infosys Ltd. Ratings Unaffected By Its US$2 Billion Share Repurchase Program And Recent Management Changes

SINGAPORE (S&P Global Ratings) Aug. 28, 2017--S&P Global Ratings said today that its ratings and outlook on Infosys Ltd. (A-/Stable/--) are not affected by the company's US$2 billion offer for share repurchases. We believe Infosys will maintain healthy cash flows and zero external debt, even if its offer for the stated share repurchase were to be fully subscribed; it will therefore continue to have a strong financial risk profile. As of June 2017, Infosys has net cash and cash equivalents of US$6.1 billion. Our rating on Infosys already factors in shareholder distributions, which are in line with its stated capital allocation policy to pay out up to 70% of free cash flows. We believe the company will maintain its financial

...SINGAPORE (S&P Global Ratings) Aug. 28, 2017--S&P Global Ratings said today that its ratings and outlook on Infosys Ltd. (A-/Stable/--) are not affected by the company's US$2 billion offer for share repurchases. We believe Infosys will maintain healthy cash flows and zero external debt, even if its offer for the stated share repurchase were to be fully subscribed; it will therefore continue to have a strong financial risk profile. As of June 2017, Infosys has net cash and cash equivalents of US$6.1 billion. Our rating on Infosys already factors in shareholder distributions, which are in line with its stated capital allocation policy to pay out up to 70% of free cash flows. We believe the company will maintain its financial discipline, which is reflective of its credit profile. In our view, Indian IT majors like Infosys, Tata Consultancy Services Ltd. and Wipro Ltd. will continue to generate significant cash flows despite making modest acquisitions to augment their technological capabilities....

Bulletin