S&P lifts ACI Worldwide view to stable

S&P said it revised the outlook to stable from negative and affirmed the BB- credit rating on ACI Worldwide Inc.

The agency also said it affirmed the BB- rating on the company's $300 million senior unsecured notes and changed the recovery rating to 4 from 3 due to the new upsized revolver, which creates greater senior claims.

The 4 recovery rating indicates 30% to 50% expected default recovery.

The outlook revision reflects a view of ACI's improved liquidity profile resulting from more lenient covenants in its recently signed bank credit facility, S&P said.

The new facility also doubled the size of ACI's revolver to $500 million from $250 million, further improving its liquidity, the agency said.

Before entering into the new credit agreement, the company had been relying on waivers to its fixed-charge coverage maintenance covenant, S&P said, and the EBITDA cushion on its leverage covenant was less than 5%.

The agency said it expects the company to maintain at least 30% EBITDA cushion on its leverage covenants in 2017.

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