Moody's may cut Fidelity National Information

Moody's Investors Service said it placed the Ba1 corporate family rating for Fidelity National Information Services, Inc. on review for possible downgrade following FIS's announcement of its plan to acquire EFD/eFunds Corp. in an all-cash transaction valued at about $1.8 billion, which includes the assumption of about $100 million of EFD debt.

Pro forma for the acquisition, Fidelity's financial leverage will initially increase to about 3.9 times debt-to-EBITDA, adjusted for leases and incorporating about $65 million in annual cost savings that the company expects to realize, Fitch said.

The review will focus on Fidelity's prospects for debt reduction over the intermediate term and its acquisition appetite, the agency said, as well as the strategic benefits associated with the merger in terms of potential synergies and cost savings.

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