The 'BB-' corporate credit rating on VeriFone Systems Inc. is based on the company's "fair" business risk profile and "significant" financial risk profile. The rating outlook is stable. The fair business risk profile reflects acquisition integration risks of recently completed Point International and Hypercom acquisitions, the company's narrowly positioned yet solid market position in payment processing hardware and related services, and its need to competitively respond to evolving technology and regulatory standards. VeriFone's total addressable market continues to expand, with new devices and mobile payment solutions offering meaningful growth opportunities. An increasing portion of the company's revenues is recurring and service-based, including that of Point, which should contribute to a more diversified and stable revenue stream in the future. However,
