S&P turns Computershare view to negative

S&P said it revised Computershare Ltd.’s outlook to negative from stable and affirmed its BBB issuer rating.

“The negative outlook reflects our view that the acquisition of the Wells Fargo Corporate Trust Services business incorporates material integration risks and will cause Computershare's leverage to increase above our expectations for the BBB rating. The $372 million incremental debt burden to partly fund the acquisition will increase S&P Global Ratings adjusted debt to EBITDA above 3x,” S&P said in a press release.

However, the agency said it sees a credible deleveraging trajectory that returns the financial metrics to levels that support the BBB rating within 12 to 18 months after the transaction is completed.

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