Fitch affirms Evergood 4, debt

Fitch Ratings said it affirmed Evergood 4 APS' (Nets) long-term issuer default rating at B+ with a stable outlook following the announcement of the proposed acquisition of German merchant acquirer Concardis and Polish payments company Dotpay.

The agency also affirmed the senior secured facility ratings and senior secured notes ratings at BB/RR2/74%. The senior secured facility rating includes the new term loan B issued for the acquisition of Concardis and Dotpay.

Fitch also assigned an expected issuer default rating of B+(EXP)/stable to Evergood Lux 3 Sarl due to a change in the restricted group.

Upon the close of the transaction, this entity will be the top-most company in the restricted group and Evergood 4’s issuer default rating will be withdrawn.

“We view the acquisitions as being part of a broader industry consolidation. While Concardis has a less dominant market position in Germany than Nets does in its core markets, central and eastern Europe have a much lower digital penetration than the Nordics and offer significant growth opportunities,” Fitch said in a news release.

“However, additional integration costs will result from these transactions and Nets is exposed to increased execution risk.

“This is offset by the retaining of key executives in the acquired companies and the operational capabilities of Nets management team.”

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