S&P ups Nexi, Nets Topco 3

S&P said it raised its issuer ratings on Nexi SpA and Nets Topco 3 Sarl to BB from BB- and removed them from CreditWatch, where they were placed with positive implications Nov. 24, 2020 (for Nets) and Oct. 8, 2020 (for Nexi). Nexi acquired Nets in July.

Nexi closed its merger with SIA on Dec. 31.

“We view positively the entrance of Cassa Depositi e Prestiti (CDP). Italian government-related entity CDP (BBB/positive/A-2), former majority owner of SIA and now owner of about 17% of the Nexi Group, announced its intention to remain Nexi's anchor shareholder. We see this commitment as a positive rating factor, because we believe it could provide continuity to Nexi's long-term business strategy to strengthen its franchise while continuing to improve financial leverage,” S&P said in a press release.

The agency noted it now estimates S&P Global Ratings-adjusted net debt to EBITDA will average 3.5x-4x in 2021-2022 on the positive effect of SIA's better leverage and the netting of group cash balances because, under the forecast, S&P does not expect Nexi to pay dividends before 2023.

The outlook is positive. S&P said it could raise the ratings if the integration of the acquired groups proceeds in line with the announcements.

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