CRISIL has downgraded its corporate credit rating on Firstsource Solutions (Firstsource) to ‘CCR BBB’ from ‘CCR BBB+’. The rating on First source’s short-term bank facilities has also been downgraded to ‘CRISIL A3+’ from ‘CRISIL A2’.
The downgrade reflects Firstsource’s reduced financial flexibility to refinance the shortfall of around $85 million of the $237 million foreign currency convertible bonds (FCCBs) falling due for redemption on December 4, 2012.
Further, the rating agency is expecting that Firstsource to finalise a new agreement with the FCCB holders by the first week of November 2012. The timeliness of completion of all formalities related to the new agreement is a key rating sensitivity factor.
However, the ratings also reflect Firstsource’s established market position and diversified revenue profile from three business verticals, viz, telecommunication (telecom) and media, healthcare, and banking, financial services and insurance (BFSI).
Further, Firstsource’s operating performance is expected to improve in 2012-13. The company’s revenues and operating profitability have increased by 32 per cent and 30 per cent, respectively, in the first quarter of 2012-13 over those in the same period of 2011-12.
Firstsource provides BPO services mainly across three verticals: telecom and media, healthcare, and BFSI. The verticals contributed 42.0 per cent, 33.0 per cent, and 25.0 per cent, respectively, to the company’s revenues during the first quarter of 2012-13. Firstsource has a global delivery model, with 32,553 employees and 48 delivery centres across the US, the Philippines, India, the UK, and Sri Lanka. The company was promoted by ICICI Bank Ltd in 2001; the bank’s shareholding in the company has reduced over the years.
| Company Name | CMP |
|---|---|
| Quess Corp | 643.95 |
| eClerx Services | 3269.75 |
| Info Edge | 7997.50 |
| CMS Info Systems | 479.45 |
| Affle (India) | 1586.25 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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