Research Update: Italy-Based Nexi SpA Outlook Revised To Stable From Positive On COVID-19 Consumption Impact; 'BB-' Ratings Affirmed

We believe that Nexi is likely to experience a revenue decline in 2020, due to lower transaction volumes following the national lockdown in Italy to prevent the spread of COVID-19 and weaker private consumption. As such, we now forecast lower-than-expected EBITDA throughout the year will likely increase the company's leverage in the near term. We are therefore revising the outlook to stable from positive and affirming our 'BB-' long-term issuer credit and issue ratings on the company and its senior unsecured notes. The stable outlook reflects our expectation that Nexi's weighted-average debt to EBITDA will not exceed 5x and its funds from operations (FFO) to debt will remain above 12% over the next 12 months. On April 7, 2020, S&P

...- We believe that Nexi is likely to experience a revenue decline in 2020, due to lower transaction volumes following the national lockdown in Italy to prevent the spread of COVID-19 and weaker private consumption. - As such, we now forecast lower-than-expected EBITDA throughout the year will likely increase the company's leverage in the near term. - We are therefore revising the outlook to stable from positive and affirming our '##-' long-term issuer credit and issue ratings on the company and its senior unsecured notes. - The stable outlook reflects our expectation that Nexi's weighted-average debt to EBITDA will not exceed 5x and its funds from operations (FFO) to debt will remain above 12% over the next 12 months....

Research Update