Fitch upgrades Fidelity

Fitch Ratings said it upgraded Fidelity National Information Services, Inc.'s issuer default rating, $1 billion secured revolving credit facility, senior secured term loan A and senior secured term loan B to BBB- from BB+ and senior notes to BBB- from BB. The outlook is stable.

Fitch also expects to rate Fidelity' announced offering of $500 million of 10-year senior bonds BBB-. Proceeds will be used to repay an equivalent portion of senior secured debt.

The upgrade reflects Fidelity's continued deleveraging efforts and expectations for more conservative capital allocation going forward, the agency said. Fidelity reduced its total debt-to-EBITDA ratio to 2.7 times as of Dec. 31 from 3.2 times at the end of 2010.

The agency said Fidelity's rating strengths include stable end demand, strong diversification and high switching costs.

Rating concerns include a history of debt-financed M&A and shareholder-friendly actions, high fixed costs, potential regulatory changes and increasing competition from non-traditional competitors such as IBM and Oracle, which have greater resources, Fitch said.

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