Moody’s upgrades Shift4

Moody’s Investors Service said it upgraded Shift4 Payments, LLC’s corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD.

The agency affirmed the company’s first-lien senior secured credit facility rating of B2, and the second-lien credit facility rating was withdrawn.

Moody’s assigned a speculative grade liquidity rating of SGL-1.

“The rating upgrade follows the completion of public and private equity offerings by Shift4 resulting in net proceeds of $452 million (net of fees and accrued interest), of which $280 million was used to repay outstanding revolver, the second-lien term loan and a portion of the first-lien term loan and the remainder was retained as cash balances,” the agency said in a press release.

Moody’s changed the outlook to positive from stable.

“The positive outlook reflects Moody’s expectation of a significant credit profile improvement in the second half of 2020 and into 2021, as revenues recover from the Q2 2020 trough and as debt balances have been reduced substantially following the equity transactions in June 2020,” the agency said.

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