S&P boosts Diebold Nixdorf

S&P said it upgraded Diebold Nixdorf Inc.’s issuer rating to CCC+ from SD, selective default, and its term loans due 2023 to CCC+ and its secured notes due 2025 to CCC+ and unsecured notes due 2024 to CCC-. The agency also assigned CCC+ and CCC- issue-level ratings to its new extended term loans due 2025 and exchanged second-lien notes due 2026, respectively. The recovery ratings are 4 and 6 respectively.

The upgrade follows the issuer’s debt restructuring, which S&P said it considered distressed.

“While the longer maturity runway and increased liquidity provide further short-term financial flexibility, we still expect Diebold to have high leverage with S&P Global Ratings'-adjusted leverage near 8.5x by year-end 2023. Considering Diebold's weak performance in recent quarters, we see such leverage as unsustainable over the longer term absent significant improved operating performance, including a return to more stable profitability and cash flow generation,” the agency said in a press release.

The outlook is positive.

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