Good service delivery capability. Strong but moderating EBITDA margins. Exposure to increasing protectionist policies abroad. Robust cash flows. Conservative financial policies with zero external debt. Exposure to foreign exchange fluctuations. The stable outlook on Infosys Ltd. reflects our expectation that the company will maintain its good competitive position, generate healthy cash flows, and have zero external debt over the next 12-24 months. This is despite Infosys' plan to use 70% of its free cash flows for shareholder distributions and the remaining for acquisitions and capital expenditure. We believe a downgrade is unlikely in the next 12-24 months, given Infosys' stable business and zero external debt. We may lower the rating if Infosys' operating efficiency deteriorates, resulting in EBITDA margins falling
