Research Update: VeriFone Systems Inc. 'B-' Rating Affirmed On Expected Improvement Of Metrics In Fiscal 2021; Outlook Stable

VeriFone Systems Inc. reported second-quarter fiscal 2020 results that were below our expectations due to impacts from the COVID-19 pandemic and global recession. While performance will be weak in fiscal 2020, we expect the economy to continue to improve, which could bode well for VeriFone's product shipments and operating performance over the next 12 months. Lower restructuring cash costs and benefits of the savings programs already executed should improve profitability and free operating cash flow (FOCF). We are affirming all our ratings on VeriFone, including the 'B-' issuer credit rating and issue-level ratings. The stable outlook reflects our expectation that while VeriFone faces operational risk and an uncertain global macro environment, we expect business recovery and margin improvements to support

...- VeriFone Systems Inc. reported second-quarter fiscal 2020 results that were below our expectations due to impacts from the COVID-19 pandemic and global recession. While performance will be weak in fiscal 2020, we expect the economy to continue to improve, which could bode well for VeriFone's product shipments and operating performance over the next 12 months. Lower restructuring cash costs and benefits of the savings programs already executed should improve profitability and free operating cash flow (FOCF). - We are affirming all our ratings on VeriFone, including the 'B-' issuer credit rating and issue-level ratings. - The stable outlook reflects our expectation that while VeriFone faces operational risk and an uncertain global macro environment, we expect business recovery and margin improvements to support deleveraging to below 8x and FOCF turning positive over the next 12 months. The outlook also considers our expectation for VeriFone's liquidity to remain sufficient over the same...

Research Update