Standard&Poor's Ratings Services lowered its ratings on Jacksonville, Fla.-based Fidelity National Information Services Inc.'s (FIS) following the company's decision to pursue a leveraged recapitalization, issuing $2.6 billion of incremental debt to repurchase its common stock through a Dutch auction tender offer. Although the company also evaluated an LBO proposal presented to them, the current financial policy is one which seeks to balance a commitment to enhancing shareholder value with maintaining the financial flexibility to execute its business plan. Initial pro forma leverage--annualizing its first-quarter 2010 EBITDA--will approach the 4x area. While high for the rating, the leveraged financial profile is partly offset by FIS' satisfactory business profile and its capacity to reduce debt, if the company chooses, from
