ICRA has revised downwards the long-term rating of Rs. 3.75 crore fund-based bank facilities of Dynacons Systems & Solutions Limited (DSSL) to LBB+ (pronounced L double B plus) from LBBB- (pronounced L triple B minus). The outlook on the long-term rating is stable. ICRA has also revised downwards the short-term rating of Rs. 5.00 crore non-fund based facilities of DSSL to A4+ (pronounced A four plus) from A3 (pronounced A three). The rating revision reflects the relatively small scale of operations of DSSL in the IT infrastructure space, its significant exposure to systems integration business which is characterised by thin profitability, high working capital intensity and relatively low entry barriers leading to intense competitive pressures. The company is in the process of demerging its distribution and marketing business, which is likely to weaken the credit profile. The ratings however favourably factor in DSSL's wide range of product portfolio with end-to-end IT infrastructure solutions and management services, its comfortable capital structure and coverage indicators, experience of its promoters in the industry and their active involvement in the operational management of the company.