Fitch Ratings has maintained Larsen & Toubro's (NSE:LT, BOM:500510) BBB+ long-term foreign and local-currency issuer default ratings with a stable outlook, according to a recent release.

The ratings reflect the company's robust position in engineering and construction, supported by above-average profitability and strong order backlog and revenue visibility, Fitch said.

The company's competitive advantages, including wide scale and high brand recognition, have helped it boost its clientage in India and overseas, according to Fitch.

The company's history of stable margins and diversification into steady, high-margin IT and technical services aids in offsetting sectoral risks, the rating agency said.

The company has limited exposure to the Iran war and has a healthy financial framework and financial flexibility.

Significant overseas earnings, a solid financial profile, and offshore funding flexibility help lift the company's local currency issuer default rating above that of the sovereign.

The outlook is stable, based on Fitch's view that the company will retain a solid net cash position even with increased growth investments, anchored by further EBITDA growth, and controlled financial management and shareholder returns.