Visa Inc.

The stable outlook reflects S&P Global Ratings' expectation that Visa will maintain low leverage and robust liquidity without any major disruptions in the next two years from technological advancement, litigation, or regulation. We expect Visa to operate with S&P Global Ratings-adjusted debt to EBITDA of 0.3x-0.5x and EBITDA margins near 70%. We could lower our ratings on Visa if: Its leverage rises significantly, particularly if debt to EBITDA approaches or exceeds 1.5x without a plan to materially reduce it; It suffers losses on its settlement exposure that erode its financial position or call into question its risk management; Existing or new regulatory or legal obstacles prove more problematic than we currently anticipate; or Competing payment networks or fintech disruption threaten

...Visa Inc. is set to remain the operator of the largest retail payment network outside of China. Its ubiquity among consumers, merchants, and banks helps protect its market position. We expect Visa will continue to generate strong cash flow. Its earnings continue to improve, boosted by secular growth in electronic payments and the strong performance of its services business, which accounts for 20%-25% of its total revenue and will likely continue to grow faster than the payments segment. We anticipate annual net revenue growth will return to the normal range of 7%-10% in the next 12-24 months, down from meaningfully above 10% in the past three years. Visa's strong market position in the payments industry, as well as diversity from its ancillary services, would support its financial performance in a potential economic slowdown. The company's robust cash flow should keep weighted average leverage, as measured by adjusted debt to EBITDA, below 0.5x at least in the next two years. Visa's adjusted...

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