Fitch assigns NCR BB-

Fitch Ratings said it assigned NCR Corp. a BB- long-term issuer default rating. Fitch also gave a BB- IDR to co-borrowers on the company’s senior secured facilities, including NCR Ltd., NCR Nederland BV and NCR Global Solutions Ltd.

The agency gave BB/RR2 ratings to NCR’s senior secured revolving credit facility and term loan as well as BB-/RR4 to its senior unsecured notes and convertible preferred stock. The ratings contemplate the expected mid-2021 closure of the $2.5 billion Cardtronics acquisition, which could add $2.6 billion or more of incremental debt.

“Fitch believes the pending Cardtronics acquisition will further diversify the company's business mix away from hardware sales and advance its strategy toward a higher mix of recurring revenue, as Cardtronics generates most of its revenue from ATM operation fees. Leverage will be high upon completion (gross leverage in the mid-4x range), but Fitch expects it to come down quickly and return to within the context of the IDR,” the agency said in a press release.

The outlook is stable.

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