NCR Atleos Receives Credit Rating Upgrade
NCR Atleos (NYSE: NATL) has received a credit rating upgrade from Moody's Ratings, reflecting its solid strategic execution and financial performance since separating from NCR in October 2023. Moody's has upgraded Atleos' Corporate Family Rating to B1 from B2 and raised the rating for its senior secured first lien debt instruments to B1 from B2.
The upgrade is attributed to Atleos' improved leverage profile, solid free cash flow, and commitment to debt reduction. Paul Campbell, CFO of Atleos, expressed satisfaction with the recognition of the company's progress in its first year as an independent entity. Atleos anticipates continued momentum in leveraging its hardware base to generate additional service, software, and transaction revenue streams, potentially leading to stronger earnings and free cash flow.
NCR Atleos (NYSE: NATL) ha ricevuto un miglioramento della rating creditizio da Moody's Ratings, a testimonianza della sua solida esecuzione strategica e performance finanziaria dalla separazione da NCR avvenuta nell'ottobre 2023. Moody's ha migliorato il Rating della Corporate Family di Atleos da B2 a B1 e ha innalzato il rating per i suoi strumenti di debito senior garantiti da primo grado a B1 da B2.
Questo miglioramento è attribuito al profilo di leva finanziaria migliorato, a un solido flusso di cassa libero e all'impegno per la riduzione del debito. Paul Campbell, CFO di Atleos, ha espresso soddisfazione per il riconoscimento dei progressi dell'azienda nel suo primo anno come entità indipendente. Atleos prevede un continuo slancio nell'utilizzo della propria base hardware per generare ulteriori flussi di entrate da servizi, software e transazioni, potenzialmente portando a guadagni più forti e flusso di cassa libero.
NCR Atleos (NYSE: NATL) ha recibido una mejora en su calificación crediticia de parte de Moody's Ratings, lo que refleja su solida ejecución estratégica y desempeño financiero desde la separación de NCR en octubre de 2023. Moody's ha elevado la calificación de la Familia Corporativa de Atleos de B2 a B1 y ha incrementado la calificación de sus instrumentos de deuda senior garantizada de primer gravamen a B1 desde B2.
Esta mejora se atribuye al perfil de apalancamiento mejorado, sólido flujo de caja libre y compromiso con la reducción de deuda. Paul Campbell, CFO de Atleos, expresó su satisfacción por el reconocimiento del progreso de la empresa en su primer año como entidad independiente. Atleos espera continuar con el impulso para aprovechar su base de hardware para generar flujos adicionales de ingresos por servicios, software y transacciones, lo que podría llevar a mayores ganancias y flujo de caja libre.
NCR Atleos (NYSE: NATL)는 Moody's Ratings로부터 신용 등급이 상향 조정되었으며, 이는 NCR에서 분리된 이후의 튼튼한 전략적 실행과 재무 성과를 반영합니다. Moody's는 Atleos의 기업 가족 등급을 B2에서 B1로 상향 조정했으며, 선순위 담보 부채 상품의 등급도 B2에서 B1로 올렸습니다.
이번 등급 상승은 Atleos의 개선된 레버리지 프로필, 견고한 자유 현금 흐름, 그리고 부채 감소에 대한 헌신에 기인합니다. Atleos의 CFO인 Paul Campbell은 독립 기업으로서 첫 해에 대한 회사의 진행 상황이 인정받은 것에 대해 만족감을 표명했습니다. Atleos는 하드웨어 기반을 활용하여 추가적인 서비스, 소프트웨어 및 거래 수익원을 창출하여 강력한 수익과 자유 현금 흐름을 가능하게 하기를 기대하고 있습니다.
NCR Atleos (NYSE: NATL) a reçu une amélioration de sa note de crédit de la part de Moody's Ratings, reflétant son exécution stratégique solide et sa performance financière depuis sa séparation de NCR en octobre 2023. Moody's a porté la note de la Famille d'Entreprise d'Atleos de B2 à B1 et a augmenté la note de ses instruments de dette senior sécurisés de premier rang de B2 à B1.
Cette amélioration est attribuée à un profil de levier amélioré, un solide flux de trésorerie disponible et un engagement envers la réduction de la dette. Paul Campbell, directeur financier d'Atleos, a exprimé sa satisfaction quant à la reconnaissance des progrès de l'entreprise durant sa première année en tant qu'entité indépendante. Atleos prévoit de continuer à tirer parti de sa base matérielle pour générer des sources supplémentaires de revenus de services, de logiciels et de transactions, ce qui pourrait conduire à des bénéfices plus solides et à un flux de trésorerie disponible.
NCR Atleos (NYSE: NATL) hat von Moody's Ratings ein Upgrade der Kreditwürdigkeit erhalten, das die solide strategische Ausführung und finanzielle Leistung seit der Trennung von NCR im Oktober 2023 widerspiegelt. Moody's hat die Corporate Family Rating von Atleos von B2 auf B1 angehoben und auch die Bewertung der vorrangigen gesicherten Schuldtitel auf B1 von B2 erhöht.
Das Upgrade wird Atleos' verbessertem Leveraging-Profil, solidem freien Cashflow und dem Engagement zur Schuldenreduktion zugeschrieben. Paul Campbell, CFO von Atleos, äußerte Zufriedenheit über die Anerkennung des Fortschritts des Unternehmens im ersten Jahr als unabhängige Einheit. Atleos erwartet, weiterhin Schwung aus der Nutzung seiner Hardware-Basis zu gewinnen, um zusätzliche Einkommensquellen aus Dienstleistungen, Software und Transaktionen zu generieren, was potenziell zu stärkeren Gewinnen und freiem Cashflow führen könnte.
- Credit rating upgrade from B2 to B1 by Moody's
- Improved leverage profile and solid free cash flow generation
- Commitment to use excess cash flow for debt reduction
- Strategy to leverage existing hardware base for additional revenue streams
- None.
Insights
The credit rating upgrade from B2 to B1 by Moody's is a positive development for NCR Atleos. This improvement reflects the company's enhanced financial stability and reduced credit risk. The upgrade could lead to lower borrowing costs for Atleos, potentially improving profitability and cash flow. The company's commitment to use excess cash flow for debt reduction is a prudent financial strategy, which could further strengthen its balance sheet over time.
However, investors should note that while the upgrade is encouraging, a B1 rating still indicates speculative elements and substantial credit risk. The company's focus on leveraging its installed hardware base for additional revenue streams is promising, but execution will be key. Shareholders should monitor Atleos' progress in generating incremental earnings and free cash flow as outlined in their strategy.
NCR Atleos' credit rating upgrade signals positive market perception and could enhance investor confidence. This improvement, coming just months after the company's separation from NCR , suggests a smooth transition and effective independent operations. The upgrade may lead to increased institutional interest and potentially improved stock liquidity.
The company's strategy to focus on service, software and transaction revenue streams aligns with current market trends towards recurring revenue models. This approach could provide more stable and predictable income, which is typically valued highly by investors. However, the success of this strategy will depend on Atleos' ability to execute effectively in a competitive fintech landscape. Investors should watch for key performance indicators related to this strategy in future earnings reports.
Moody’s recently published a Ratings Action stating that Moody’s has upgraded NCR Atleos’ Corporate Family Rating to B1 from B2 and upgraded the rating for Atleos’ senior secured first lien debt instruments (including term loan A, term loan B, senior secured notes and revolving credit facility) to B1 from B2. Moody’s noted that the upgrade to B1 reflects Atleos’ improved leverage profile, solid free cash flow and commitment to use excess cash flow to reduce debt.
“We are pleased to see Moody’s acknowledge the improving credit profile and progress Atleos has made in our first year as an independent public company,” said Paul Campbell, Chief Financial Officer for Atleos. “As our strategy to leverage our existing installed base of hardware to generate additional service, software and transaction revenue streams continues to build momentum, we expect to drive strong incremental earnings and free cash flow that should further enhance the Company’s financial profile.”
About Atleos
Atleos (NYSE: NATL) is a leader in expanding self-service financial access, with industry-leading ATM expertise and experience, unrivalled operational scale including the largest independently-owned ATM network, always-on global services and constant innovation. Atleos improves operational efficiency for financial institutions, drives foot traffic for retailers and enables digital-first financial self-service experiences for consumers. Atleos is headquartered in
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Forward-Looking Statements
NCR Atleos Corporation (“NCR Atleos,” “Atleos” or the “Company”) cautions that comments made during this presentation and in these materials contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements use words such as “estimate,” “expect,” “target,” “anticipate,” “outlook,” “intend,” “plan,” “confident,” “believe,” “will,” “would,” “potential,” “positioned,” “may,” and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Statements that describe or relate to the Company's plans, targets, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements in these materials include, without limitation, statements regarding the future commercial or financial performance of the Company following the separation from NCR Voyix Corporation (“Voyix” or “NCR Voyix”), and value creation and ability to innovate and drive growth generally as a result of such transaction; the expected financial performance of the Company for 2024; the Company's net leverage ratio targets for year-end 2024 and long-term; our expected areas of focus and strategy to drive growth and profitability and create long-term stockholder value, including key performance indicator targets and expectations for 2024; the Company's focus on advancing strategic growth initiatives and transforming the Company into a software-led ATM as a service company with a higher mix of recurring revenue streams, including the Company's focus on driving efficiencies and standardizing cloud-native service offerings; statements regarding redeployment priorities, and future capital allocation priorities and our expected free cash flow for 2024; and our expectations of NCR Atleos' ability to deliver increased value to customers and stockholders.
Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of the Company's control, including the failure of NCR Atleos to achieve some or all of the expected strategic benefits or opportunities expected from the spin-off, that NCR Atleos may incur material costs and expenses as a result of the spin-off, that NCR Atleos has no pre-spin operating history as an independent, publicly traded company, and NCR Atleos' historical and pro forma financial information is not necessarily representative of the results that it would have achieved as a separate, publicly traded company and therefore may not be a reliable indicator of its future results, NCR Atleos' obligation to indemnify NCR Voyix pursuant to the agreements entered into connection with the spin-off (including with respect to material taxes) and the risk NCR Voyix may not fulfill any obligations to indemnify NCR Atleos under such agreements, that under applicable tax law, NCR Atleos may be liable for certain tax liabilities of NCR Voyix following the spin-off if NCR Voyix were to fail to pay such taxes, that agreements binding on NCR Atleos restrict it from taking certain actions after the distribution that could adversely impact the intended
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Investor Contact
Brendan Metrano
NCR Atleos
brendan.metrano@ncratleos.com
Media Contact
Scott Sykes
NCR Atleos
scott.sykes@ncratleos.com
Source: NCR Atleos
FAQ
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