Standard & Poor's Ratings Services said Thursday it raised its corporate credit rating for VeriFone Holdings Inc. to "BB-" from "B+." Both are non-investment, or "junk," grades.
S&P said the upgrade reflects an improved financial performance from the San Jose, Calif., maker of electronic payment equipment. Analyst Martha Toll-Reed said the company also has moderate leverage and good liquidity.
S&P maintains a stable outlook on the company, which "reflects VeriFone's good market position, more consistent operating performance, and improved financial profile and liquidity," the analyst said.
VeriFone earlier this month posted a $10.6 million profit in its fiscal first quarter, and revenue grew 4 percent to $223.4 million. That compares with a loss of $182.6 million in the year-ago period, when the company took a big write-down to the value of its businesses.
The company's shares climbed 19 cents to $22.93 in afternoon trading.