S&P places VeriFone rating on CreditWatch

Standard & Poor's Ratings Services said Wednesday it placed its "BB-" corporate credit rating on VeriFone Holdings Inc. on CreditWatch with negative implications.

San Jose, Calif.-based VeriFone makes checkout-line payment terminals and software. A "BB-" rating is considered non-investment grade, also known as junk.

The ratings agency said the action "reflects our concern that weakening global economic and business conditions will impede VeriFone's ability to achieve and sustain further improvements in its operating performance and leverage profile."

S&P called VeriFone's operating performance over the past year "volatile" in part because of growth in lower-margin international markets and weakness in its more profitable North American segments.

S&P added that if it does downgrade VeriFone's corporate credit rating, the lowest it is likely to go would be limited to "B+."

Shares climbed 35 cents, or 7.1 percent, to $5.27 in afternoon trading. The stock has traded in the 52-week range of $2.31 and $21.17.