Moody's confirms VeriFone; outlook negative

Moody's Investors Service said it confirmed VeriFone, Inc.'s corporate family rating at B1 with a negative outlook.

Simultaneously, Moody's said it raised VeriFone's senior secured debt ratings to Ba2 from B1 and raised the probability of default rating to B1 from B2 due to a change in the company's capital mix.

The rating confirmation concludes the review for possible downgrade that was initiated in Dec. 2007 following the company's announcement that it would restate prior financials statements for the first three quarters of fiscal 2007 and delay filing its fiscal year-end 2007 form 10-K financials due to accounting errors discovered primarily associated with inventory valuation issues, the agency added.

VeriFone has subsequently concluded its internal review into the accounting errors, filed the required financial statements, and is now in compliance with all covenants related to its senior secured bank credit facility, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.