TEXT-Fitch assigns rating to HCL Infosystems

(The following statement was released by the ratings agency)

Dec 15 - Fitch Ratings has today affirmed HCL Infosystems Limited's (HCLI.BO) (HCL) National Long-term rating at 'AA-(ind)' (AA minus(ind)). The Outlook is Stable. Also, Fitch has assigned a rating of 'AA-(ind)' (AA minus(ind)) to HCL's INR1000m non-convertible debenture (NCD) programme. Fitch has also affirmed HCL's bank loan ratings for enhanced amounts as follows: - Non fund-based working capital banking lines of INR13750m (enhanced from INR4850m): National Long-term rating of 'AA-(ind)' (AA minus(ind)) and National Short-term rating of 'F1+(ind)';

- Fund-based working capital banking lines aggregating INR1250m (enhanced from INR1150m): National Long-term rating of 'AA-(ind)' (AA minus(ind)) and National Short-term rating of 'F1+(ind)'.

This rating action commentary updates the same published by the agency on 05 May 2008.

HCL's total adjusted net debt/EBITDAR improved to 0.1x at FYE08 from 0.2x at FYE07, due to a high level of cash and equivalents in the balance sheet. As such, its total debt at FYE08 stood at INR3.55bn compared to INR2.36bn at FYE07. HCL's interest coverage (EBITDA/ interest) was 9.38x in FYE08 as compared to 18.9x in FYE07.