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Moody's places Cardtronics unit on review

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Moody's places Cardtronics unit on review

Moody's has placed the Ba2 corporate family rating ofCardtronics Inc. under review for a potential downgrade.

The review follows an announcement that parent plans to DirectCash Payments Inc.

Moody's believes the proposed transaction will improve thecompany's scale, but will result in a more aggressively levered capitalstructure. The review will focus primarily on the company's pro-forma capitalstructure, liquidity profile, expected pace of debt reduction, and futureoperating strategy, including synergies that maybe realized after the acquisition.

The rating agency will also take into account risks relatingto the potential loss of Cardtronics' largest customer relationship inmid-2017, as well as challenges facing the company due to the limited long-termgrowth potential for cash-based transactions resulting from the secular shiftto electronic forms of payments.