Moody's downgrades Shift4

Moody's Investors Service said it downgraded Shift4 Payments, LLC's corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

The agency lowered the first-lien senior secured credit facility rating to B2 from B1, and the second-lien credit facility rating to Caa2 from Caa1. The outlook remains stable.

“The downgrade of the CFR is driven by the negative impact of the coronavirus outbreak on the company's EBITDA and free cash flow generation,” said the agency in a press release.

“While prior to the outbreak Shift4's integrated payments and proprietary POS software solutions were driving strong growth, Moody's believes Shift4 is likely to experience a net revenue decline of about 40% in Q2 2020. Moody's expects revenues to gradually recover in Q3 and Q4 to levels still below Q1, resulting in a full year 2020 decline of about 20%,” Moody’s said.

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