Moody’s lifts NCR

Moody's Investors Service said it upgraded the credit ratings of NCR Corp. (NCR Voyix), including the corporate family rating to B1, probability of default rating to B1-PD, the senior secured rating to Ba2, and the senior unsecured rating to B2, with a stable outlook.

Previously, the rating was on review with direction uncertain. The speculative grade liquidity rating was upgraded to SGL-1 from SGL-2.

“The higher rating considers the imminent spinoff of NCR's ATM business, NCR Atleos, and reflects the anticipated capital structure and performance of the remaining business, which will be renamed NCR Voyix,” Moody’s said in a press release.

As part of the spinoff, NCR Atleos LLC will pay a dividend to NCR Voyix, which will enable it to refinance its term loans into a single-term loan with a principal of about $200 million and pay off the two highest coupon bonds in its capital structure, the $500 million of 6 1/8% senior notes due 2029 and the $500 million of 5¾% senior notes due 2027. As such, the total remaining reported debt at NCR Voyix will be $2.5 billion, consisting of the $200 million term loan maturing in 2028, and three sets of senior notes maturing in 2028, 2029 and 2030.

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