Nexi SpA

The positive outlook reflects the likelihood that we could raise the ratings on Nexi over the next 12-18 months if we see a meaningful and sustainable improvement in its financial leverage. An upgrade would hinge on our expectation that adjusted FFO to debt would remain above 30% and adjusted debt to EBITDA would remain below 3x on a recurrent and consistent basis. We could revise the outlook back to stable if we thought Nexi's financial metrics were unlikely to improve beyond the current assessment. Specifically, we would conclude this if we expected its adjusted FFO to debt to remain 20%-30%, and adjusted debt to EBITDA to remain 3x-4x over the forecast horizon. This could be the result of: Debt- or

...Nexi is one of the larger European payment service provider, with an established and geographically diversified operational base. The acquisition of Nets and SIA, completed in 2021, provided Nexi with a larger scale and wider geographical diversification in Europe. We expect this will support its growing business volumes and operating margins. Nexi is by far the largest player in the growing Italian market, where its product proposition spans the whole payment value chain. After the merger with Nets, Nexi also became the leading merchant acquirer in the Nordics, and gained strong market positions in Germany, Switzerland, Austria, and Poland. The integration with the recently acquired companies, Nets and SIA, is proceeding according to Nexi's plans and the execution risks have diminished, in our view. Nexi played a significant role in the ongoing consolidation of the European payment processor industry. Nexi's business volumes have increased markedly since 2016 with annual revenue forecast...

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