S&P: Fidelity National on positive watch

Standard & Poor's said it placed the BB corporate credit and senior secured ratings of Fidelity National Information Services Inc. (FIS) on CreditWatch with positive implications.

The CreditWatch listings follow the announced merger agreement in which FIS, a majority owned subsidiary of Fidelity National Financial Inc. (BBB-/Watch positive) and Certegy will combine operations to form a single publicly traded entity.

Under the terms of the merger agreement, FIS and Certegy will be combined in a tax-free, stock-for-stock merger under which each share of FIS common stock will be exchanged for 0.6396 shares of Certegy common stock, the agency said.

After a preliminary analysis, S&P said it corporate credit rating for the new company most likely will be at or just below investment grade.

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