...The Rating Watch Evolving (RWE) on Finastra Limiteds' (Finastra) first-lien debt reflects uncertainty over the amount of debt that will be repaid with proceeds from the Universal Banking sale. Fitch Ratings expects to resolve the Rating Watch when the transaction closes, which is expected in early calendar year 2027. The company plans to use proceeds from the sale of its Universal Banking division to repay debt. Fitch expects this to result in cash flow from operations (CFO) minus capital expenditures (capex) to debt ratio in the low single digits and Fitch-adjusted EBITDA leverage from 5x to 6.5x by the end of the forecast period. These metrics are consistent with a 'B' rating. Finastra benefits from strong revenue retention, positive free cash flow (FCF) and an established market position as a fintech software provider to leading global banks....
