IBM India's Credit Outlook Upgraded to Stable by ICRA on Parent Company Strength

ICRA revised the long-term outlook for IBM India Private Limited to 'Stable' from 'Negative'. The agency reaffirmed the long-term rating at '[ICRA]AA+'. ICRA also reaffirmed the short-term rating of '[ICRA]A1+'.

The outlook revision stems from the strengthening credit profile of the ultimate parent, International Business Machines Corporation (IBM). ICRA expects IBM Corporation to report strong EBITDA growth. The parent company is also expected to maintain a healthy financial profile, characterized by a strong cash position relative to its debt.

India remains a key global delivery center for IBM. The Indian subsidiary contributes nearly one-third of the global workforce. The ratings reflect IBM India’s established market position and strong financial profile. This profile features healthy earnings and a net debt-free status, supported by implicit backing from the parent company.