Fitch assigns BB- to NCR Atleos

Fitch Ratings said it assigned NCR Atleos, LLC a first-time long-term issuer default rating of BB-. The outlook is stable. Fitch also assigned BB+/RR2 ratings to the company's planned first-lien senior secured revolver, term loans and senior notes.

“NCR Atleos is a market leader in ATM manufacturing and has one of the largest independent ATM networks in the U.S., with its Allpoint Network. Fitch believes there are material secular pressures the company could face over time, but believes the company will continue to generate meaningful cash through at least the medium-term horizon. Fitch also expects the newly spun-off entity to manage its financial leverage at a reasonable level that positions it fairly at the BB- rating category,” Fitch said in a press release.

The agency said it forecasts the company could operate with EBITDA leverage (gross) in the high-3x to 4x range during 2024-2026, or 3x-3.5x on a Fitch-calculated net leverage basis. “Management is targeting net leverage in the 2.5x-3x range over the long-term but Fitch has a more conservative view on revenue growth and margin expansion given secular industry concerns.”

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