Fitch to upgrade Fidelity National

Fitch Ratings said it expects to raise Fidelity National Information Systems' issuer default rating to BB+ from BB, $900 million secured revolving credit facility to BBB- from BB+, secured term loan to BBB- from BB+ and 4¾% senior notes to BBB- from BB+.

The outlook is expected to be stable.

Fitch said the upgrade is based on the company's greater focus on integrating acquired assets and acquisition cost synergies.

Ratings are supported by recurring revenue, diversified product portfolio, diverse customer base and pro forma total debt-to-operating EBITDA ratio of about 3.1 times, the agency said.

Concerns include established competitors, potential use of free cash flow to fund share buybacks or acquisitions and a below-average free cash flow conversion rate, Fitch said.

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