Our 'BB-' corporate credit rating on Verifone Systems Inc. is derived from: Our anchor of 'bb', based on our "fair" business risk and "significant" financial risk profile assessments for the company. Our modifier for comparable rating analysis had a one-notch unfavorable impact on the outcome of the rating, reflecting VeriFone's lower product diversity and high volatility relative to 'BB' rated technology hardware sector companies, including Belden Inc. Competitive weakness due to historical product under-investment Shared leadership position in merchant payment systems markets Significant executive management turnover Debt repayment focus Adequate liquidity Gradually ratcheting financial covenants Modest debt maturities until 2016 The stable outlook reflects VeriFone Systems Inc.'s leading presence in global merchant payment systems markets (which it shares with Ingenico
