Visa Inc.

The stable outlook on Visa reflects S&P Global Ratings' expectation that the company will maintain low leverage and robust liquidity without any major disruptions in the next two years from technological advancement, litigation, or regulation. More specifically, we expect Visa to operate with debt to EBITDA around 0.6x-1.0x, as we measure it, and with EBITDA margins near 70%. In our base case, we expect Visa to report strong earnings growth in fiscal 2022 on the back of continued growth in the economy and in electronic payments. We don't expect the impact of the armed conflict in Ukraine or rising interest rates to more than moderately weigh on Visa's growth. We could lower our ratings on Visa if: Its leverage rises

...Visa Inc. is the operator of the largest retail payment network outside of China. Its ubiquity among consumers, merchants, and banks helps protect its market position. The pandemic weighed on parts of the company's business, but earnings have rebounded materially. The pandemic caused a downturn in Visa's 2020 results and has continued to limit its revenue from cross-border travel-related payments. However, earnings have rebounded over pre-pandemic levels, helped by the global economic recovery and the continued growth of electronic payments. Cross-border activity continues to rise. The Russia-Ukraine conflict will slow the pace of Visa's net revenue growth and carries some settlement risks. Visa, which has ceased operations in Russia, derived about 5% of its net revenue from Russia and Ukraine in the fiscal year ended Sept. 30, 2021. We expect the decline in revenue in those countries to slow Visa's total net revenue growth to between the low double-digits and mid-teens this fiscal year....

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