Moody's Investors Service has placed Global Payments Inc.'s Ba2 ratings under review for upgrade and affirmed Total System Services Inc.'s senior unsecured rating of Baa3.

This followed the announcement of the two companies' pending all-stock deal, set to close in the fourth quarter.

Moody's said the companies' complementary end markets and similar distribution strategies create opportunities for both to grow revenues and generate cost efficiencies over time. The rating agency believes the companies' expected cost synergies of $300 million and revenue synergies of $100 million are achievable, though its base case "incorporates a modestly lower amount."

Moody's projected the pending merger's combined revenue in 2019 at $8.50 billion.