Good service-delivery capability. Strong EBITDA margins. Largely India-based operations that expose the company to protectionist policies. Robust and stable cash flows. Conservative financial policies with zero external debt. Large unhedged exposure to foreign exchange fluctuations. The stable outlook on Infosys Ltd. reflects our expectation that the company will maintain its competitive position to generate healthy cash flows and have zero external debt over the next 12-18 months. We also expect Infosys to maintain a conservative policy toward acquisitions and dividends over the next 12-18 months. We believe a downgrade is unlikely in the next 12-18 months, given Infosys' stable business and zero external debt. We may lower the rating on Infosys if the company's operating efficiency deteriorates, resulting in significantly
