S&P assigns BB- to Rolta notes

Standard & Poor's said it assigned its BB- long-term issue rating to Rolta Americas LLC's proposed up to $300 million dollar-denominated senior unsecured notes.

Rolta India Ltd. (BB-/stable/--), which indirectly owns Rolta Americas, will irrevocably guarantee the notes.

Rolta expects to primarily use the proceeds from the proposed notes to refinance a part of its rupee loans and external commercial borrowings.

S&P said it believes that the company’s financial performance will remain supportive of a "significant" financial risk profile despite the proposed issuance, with the weighted EBITDA interest coverage at 3.5x-3.6x over fiscals 2015-2017 (years ending March 31).

The agency expects the time lag between the raising of funds and the actual prepayment refinancing to significantly weaken Rolta's ratio of funds from operations to debt to 15.0%-15.5% in fiscal 2015 from more than 19% in fiscal 2014.

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