Moody's affirms Baa1 rating for TCS, Infosys, sees growth slowing in FY24

IT services companies expected to maintain businesses growth and market position

Rating agency Moody’s on Wednesday affirmed Tata Consultancy Services (TCS) and Infosys Ltd’s “Baa1” rating, reflecting moderate credit risk for entities into investment grade category.

The rating affirmation reflects the companies' position as leading information technology (IT) services providers with globally diversified and cost-competitive operations that translate into sustained profitability and robust credit profile, said Kaustubh Chaubal, senior vice president at Moody’s.

The outlook for both companies is stable, reflecting Moody's expectation that they will maintain their robust businesses and market position.

Moody’s said good financial discipline will aid TCS in preserving its large net cash/liquid investments position, while maintaining