Fitch cuts some FIS loans to BB+

Fitch Ratings said it affirmed Fidelity National Information Services, Inc.'s issuer default rating at BB+ and removed it from Rating Watch negative.

The agency also downgraded Fidelity National's $900 million secured revolving credit facility to BB+ from BBB- and senior secured term loan A to BB+ from BBB-.

Fitch rated the company's proposed new senior secured term loan B at BB+.

The outlook is stable.

The downgrade of the secured debt reflects reduced expectations that issuer default rating will be upgraded to investment grade in the foreseeable future, the agency said.

FIS' total debt-to-operating EBITDA ratio pro forma for the debt issuance is expected to be 3.7 times.

Strengths include stable end demand for core processing services from financial institutions, strong customer diversification and high switching costs, the agency noted.

Concerns include history of debt-financed acquisitions and shareholder friendly actions, high fixed expense cost structure, minimal business need to maintain ratings above the BB category, potential regulatory changes and increasing competition from non-traditional competitors, Fitch said.

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