S&P changes VeriFone view to negative

S&P said it revised its outlook on VeriFone Systems Inc. to negative from stable and affirmed all of the ratings, including the B- issuer credit rating.

“The negative outlook reflects our expectation that the uncertain demand environment, stemming from industry inventory digestion, will cause the company’s debt to EBITDA to remain elevated at well above 8x. We also expect VeriFone's growth challenges and rising tax settlement payments will pressure its cash flow over the next 12-24 months,” S&P said in a news release.

“The outlook also incorporates the potential the company will face elevated refinancing risk when its $2 billion term loan becomes current in August 2024.”

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