S&P Global Ratings on Aug. 8 downgraded Diebold Nixdorf Inc.'s issuer credit rating to B from BB-. The outlook is negative.

The rating agency also lowered Diebold Nixdorf's first-lien issue level rating to B. The recovery rating was kept unchanged at 3. The recovery rating, according to the rating agency, reflects its expectation of meaningful recovery in the event of a payment default.

In addition, the rating agency downgraded Diebold Nixdorf's senior unsecured issue level rating to B- from B+. The recovery rating remains at 5, reflecting the rating agency's expectation of modest recovery in the event of a payment default.

The downgrade reflects Diebold Nixdorf's underperformance and leverage in the mid-6x area as of June 30, according to the rating agency.

The negative outlook, according to the rating agency, reflects its expectations of Diebold Nixdorf's high leverage at over 8x in 2018 from a raised cost base and meaningful risks to attain improvement in its new business, and cost savings plan which will weigh down free cash flow generation.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.