The rating on San Jose, Calif.-based VeriFone Holdings Inc. reflects volatile but improving operating performance and a leveraged financial profile. VeriFone's leading position in the niche market for electronic payment solutions, adequate liquidity, and ample headroom under existing bank covenants all partially offset those factors. VeriFone designs, markets, and services system solutions that enable secure electronic payments. The company reported revenues for the July 2009 quarter of $211 million, down 18.4% from the same period of fiscal year 2008. The year-over-year decline reflects softer demand, particularly in the financial and retail sectors, as well as significant foreign currency fluctuation effects. Standard&Poor's Ratings Services expects these trends to continue into 2010. Operating performance over the past 18 months has
