Moody’s downgrades Paysafe

Moody’s Investors Service said it downgraded Paysafe Group Holdings II’s corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD. At the same time, Moody’s downgraded to B3 from B2 the instrument rating on the first-lien facilities held by Pi Lux Finco Sarl, Paysafe Holdings (US) Corp. and PI UK BidCo Ltd., and to Caa2 from Caa1 instrument rating on the second lien facilities issued by Pi Lux.

“The outbreak is impacting Paysafe’s transaction volumes as payment volumes have declined due to social distancing and weaker demand driven by high unemployment, the suspension of sports tournaments impacts its digital wallet and eCash solutions divisions that are considerably exposed to gambling activities,” Moody’s said in a press release.

The drop in revenue and EBITDA forecasted over the next 12-18 months could lead to leverage, as measured by Moody's adjusted debt / EBITDA, above 8x on a sustained basis, the agency said.

The outlook remains stable.

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