S&P Downgrades Worldline to Junk Rating Amid Expected Revenue Decline

Worldline SA's investment grade rating has been cut to junk by S&P Global Ratings due to expected revenue decline of 2% this year. The downgrade reflects issues with hardware delivery and termination of high-risk merchants. Worldline's €550m bonds due 2030 dropped over 2 cents to around 87 cents. The company has been under scrutiny since its share price plunged in late June on allegations of covering up fraud.

Worldline SA, a prominent player in the global payment services sector, has been downgraded to junk status by S&P Global Ratings. The downgrade, announced on August 22, 2025, reflects the ratings agency's projection of a 2% decline in revenue for the current year. The move underscores the challenges Worldline faces, including hardware delivery issues and the termination of high-risk merchants [1].

The long-term issuer credit rating has been downgraded from BBB- to BB, with a negative outlook. Additionally, the short-term credit rating has been downgraded from A-3 to B. This downgrade has had an immediate impact on Worldline's bonds, with its €550 million bonds due in 2030 dropping over 2 cents to around 87 cents [1].

The recent scrutiny on Worldline began in late June when its share price plunged following media reports of alleged fraud by some of its customers. The company has since hired an external firm to conduct an audit of its portfolio of risky clients and is expected to release the final conclusions of these audits alongside its earnings report on October 21, 2025 [2].

Worldline has emphasized that the downgrade has no immediate impact on its current funding, debt maturities, or marginal cost impact. The company continues to maintain a strong liquidity profile, as noted by S&P Global Ratings [1].

Despite the challenges, Worldline remains committed to its strategic roadmap, which aims to reposition the company and unlock its full potential. The Capital Market Day on November 6, 2025, is set to present the Group's strategic roadmap [1].

References:
[1] https://finance.yahoo.com/news/worldline-p-global-ratings-downgrade-131500200.html
[2] https://www.bloomberg.com/news/articles/2025-08-22/worldline-cut-to-junk-by-s-p-on-expected-revenue-decline