S&P Global Ratings on Aug. 26 affirmed ACI Worldwide Inc.'s issuer credit rating of BB with a negative outlook.
ACI's ratings were previously on watch negative.
Ratings said the affirmation reflects its expectations that the payments infrastructure company's pro forma leverage will increase to 3.0x by mid-2020 from 2.3x at the end of 2018, following its acquisition of SpeedPay Inc. from Western Union Co. The rating agency expects the acquisition to drive at least a low to mid-single digit percent revenue growth in 2020 and it expects leverage to be at the high-2x range in 2021 as ACI Worldwide realizes additional revenues and cost savings from the deal. Despite this, Ratings said the potential for organic growth is limited as the payments industry continues to see further consolidation.
Ratings gave the company a negative outlook over its exposure to a slowing global economy, which could make it difficult to maintain leverage below 4x over the next 12 months.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
