S&P pares Paysafe

S&P said it lowered its ratings for Paysafe Group Holdings II and its secured loans to B- from B and also lowered the rating on the subordinated loans to CCC from CCC+.

“Social-distancing measures should lead to a significant deterioration in credit metrics over the next 12 months, with uncertainties regarding the pace of recovery. We assume social-distancing measures will cause a significant drop in revenue over the next 12 months, contrary to our previous expectations of about 6%-8% revenue increase,” said S&P in a press release.

“In our view, Paysafe will see revenue decline of about 10%-20% and EBITDA decline of about 20%-25% after exceptional costs. This results in leverage of about 9.5x-10.5x and FOCF generation dropping significantly below 5% to debt, compared with previous expectations of about 6.8x-7x and 4%,” the agency said.

The outlook is stable.

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