Fitch Ratings affirmed Fidelity National Information Services Inc.'s long-term issuer default rating at BBB, following the company's announcement of its deal with payments processor Worldpay Inc.
The outlook on the rating is stable.
Fitch views Fidelity National's pending transaction as credit neutral given its significant equity component, as well as the combined entity's expected ability to generate a strong and stable free cash flow.
The rating agency also expects the two companies to have overlapping areas that may enable significant cost synergies of $400 million over three years, plus cross-selling opportunities.
However, Fitch warned of a potential material integration risk for a deal of this size, especially given Worldpay's merger with Vantiv in 2018.