S&P lifts ACI Worldwide

Standard & Poor's said it raised the corporate credit rating on ACI Worldwide Inc. to BB from BB- and removed the rating from CreditWatch, where it was placed with positive implications in November.

The outlook is stable.

The agency also said it raised the rating on the company's $300 million senior unsecured notes due 2020 to BB from BB- and removed it from CreditWatch.

The 3 recovery rating remains unchanged and indicates 50% to 70% expected default recovery.

The agency said the upgrade was based primarily on a reassessment of ACI's surplus cash, which results in leverage in the low-3x range as of Sept. 30, said Christian Frank, an S&P analyst.

The ratings reflect the company's intermediate financial risk profile, which indicates that leverage is likely to fall below 3x during the next few quarters based on EBITDA growth, Frank said in a press release.

The ratings also consider its negative financial policy and fair business risk profile, the agency said.

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