S&P Global Ratings has lowered its corporate credit rating on Cardtronics plc to BB from BB+ and has revised the rating outlook to stable from negative.
The downgrade reflects the rating agency's expectation that EBITDA will decrease in 2018, resulting in adjusted debt to EBITDA approaching the mid-3x range, from the low-3x range as of Dec. 31, 2017.
S&P said the expectation for EBITDA decline in 2018 is driven by market pricing challenges in Australia and the U.K. that will pressure pricing in those regions.
Meanwhile, the stable outlook reflects the agency's expectation that despite Cardtronics' revenue and EBITDA declines in 2018, adjusted debt to EBITDA will not exceed 4x over the coming year. The outlook also reflects the rating agency's expectation that the company will return to organic EBITDA growth in 2019 driven by low-single-digit percentage global cash usage and ATM unit growth and stable to expanding EBITDA margins for the company, S&P said.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.