S&P lowers First American Payment

Standard & Poor's said it lowered the corporate credit rating on First American Payment Systems LP to B from B+.

The outlook is stable.

The downgrade reflects less favorable financial metrics, including decreased free cash flow, as a result of the company's prospective dividend recapitalization, S&P said.

The transaction will add about $130 million of incremental debt to the company's capital structure and pro forma leverage will increase to 6.25x, the agency said.

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