Standard & Poor's Ratings Services downgraded IT majors Infosys, Tata Consultancy Services and Wipro on Wednesday.
The ratings service has “affirmed ‘BBB+' long-term corporate credit ratings on these entities”
This downgrade comes after S&P lowered outlook on India's sovereign rating to negative from stable due to slow fiscal progress and deteriorating economic indicators.
S&P said that its ratings on these IT companies reflect their ‘BBB+' transfer and convertibility (T&C) assessment of India. However, the ratings service said that it could lower ratings on these companies if they revise their T&C assessment or if they downgrade the sovereign credit rating.
The stock of TCS closed at Rs 1,172, down 2 per cent from the previous close on the BSE. Wipro closed at Rs 410, down 7 per cent and Infosys closed at Rs 2,348, up 0.01 per cent.