S&P cuts Verifone to stable; ratings on watch

Standard & Poor's said it revised the outlook on VeriFone Systems Inc. to stable from positive following news that it will acquire Point International.

The agency also said it placed the rating on the $316 million unsecured convertible notes on CreditWatch with negative implications.

S&P also affirmed the company's BB- corporate credit rating.

The outlook change reflects potential integration risks with the announced Point International acquisition in addition to the recently completed Hypercom acquisition, the agency said, and higher pro forma leverage.

Based on its solid market position in its core products and new growth initiatives, S&P said it anticipates that VeriFone will gradually de-lever through revenue and EBITDA expansion.

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