Fitch revises NCR watch to negative

Fitch Ratings said it revised the rating watch for NCR Corp.'s long-term issuer default rating, and the IDRs for subsidiary co-borrowers NCR Ltd., NCR Nederland BV, and NCR Global Solutions Ltd., as well as the company's senior secured facilities and issue-level ratings, to negative from evolving.

This change follows details NCR has provided on its planned separation into two separate companies, Fitch said in a press release. NCR plans to spin off its ATM-related business to shareholders.

“NCR provided high-level capitalization frameworks for NCR (RemainCo), but the company still has deleveraging targeted over the next year that could impact final capitalization post-spinoff. Fitch believes RemainCo will be solidly positioned in many of its end markets, including retail, hospitality and digital banking.

“The ATM-related businesses that face long-term secular pressures will be spun-off to shareholders. Fitch expects both companies will generate solid and positive FCF that should enable them each to grow over time. However, the stand-alone cost and FCF generation profile of RemainCo will guide its ability to grow and compete over time,” the agency said in a press release.

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