S&P puts Nexi on positive watch

S&P said it placed its BB- issuer and issue ratings on Nexi SpA on CreditWatch with positive implications.

The CreditWatch placement follows Nexi’s Monday announcement it signed a memorandum of understanding with SIA to merge by incorporating SIA into Nexi, S&P said.

“We believe the transaction could improve Nexi’s financial profile. The new group will benefit from SIA’s lower leverage upon closing, and we expect the combined entity to enjoy synergies in the medium term, which would further support EBITDA and cash generation capacity,” the agency said in a press release.

S&P said it plans to resolve the placement once it has confirmation the parties have finalized the merger agreement and received shareholder, regulatory and antitrust approvals.

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