Credit rating agency Fitch has affirmed top rating on technology major IBM India's on the back of its strong business performance and close ties with its parent company.
IBM India is the subsidiary of US-based global technology giant International Business Machines Corp Inc.
"Fitch Ratings has affirmed IBM India Pvt Ltd's national long-term rating at 'AAA(ind)'. The outlook is stable," Fitch said in a statement.
AAA rating symbolises the best quality companies, which are reliable and stable.
It added that the rating has taken into account IBM India's strong strategic linkage to its parent entity.
The rating agency has also affirmed both AAA and F1+ rating on IBM India's $6 billion fund.
AAA and F1+ are the top ratings for long-term and short-term funds, respectively.
Besides, IBM's $4 billion fund has got AAA rating.
In the last fiscal, IBM India drew 64% of its revenues from the outsourcing business from the global operations, while the remaining 36% was derived from domestic services.
"India is likely remain a key outsourcing destination based on low-cost labour and a large talent pool...The ratings also recognise IBM India's prominent position in the domestic servers and storage devices market with a well-established brand name and significant growth in revenues," Fitch said.
It said that, despite lack of legal ties between the parent company and its Indian subsidiary in the form of guarantees or cross default provisions, "the strategic and operational links between the two entities are strong and IBM would support IBM India if the need arises."
IBM India's has four broad areas of operations -- global business services, systems and technology, software, and global technology services.
