...- VeriFone Systems Inc. reported fiscal 2019 (ending October 2019) and first-quarter fiscal 2020 (ending Jan. 31) results that were below our expectations due to lower revenue growth than expected and further restructuring activity and costs. The company will incur restructuring costs of approximately $90 million in fiscal 2020, a similar amount it spent in fiscal 2019. - We now expect slower deleveraging with debt to EBITDA remaining above 8x in fiscal 2020 versus 6x or below estimated previously, and weak free cash flow to debt over the coming 12 months. - We are lowering our issuer credit rating on Verifone to 'B-' from 'B'. - At the same time we are lowering our rating on the company's first-lien debt to 'B-' from 'B.' - The stable outlook reflects our expectation that while Verifone faces operational risk and an uncertain global macro environment, leverage will peak in the high-8x area in fiscal 2020 before improving due to recent cost cuts and reduction in one-time expenses. The outlook...
