Fitch assigns MoneyGram B, loans B+

Fitch Ratings said it assigned a first-time long-term issuer default rating to MoneyGram International, Inc. of B. The outlook is stable. Fitch also assigned B+/RR3 ratings to the company's revolver, term loan and other first-lien secured debt. The ratings impact $1 billion of debt, not including the undrawn revolver of $150 million.

“MoneyGram's revenues contracted in 2019 and 2020 due to the pandemic and the loss of their exclusive agreement with Walmart. However, in FY21 the company's revenue grew by 5.5%, and it ended 2022 with revenue growth just above 2%. Most of this growth is attributable to the company's digital business. Improved digital performance is trending across the fintech sector; consumers were quick to adopt digital money transfer offerings during the pandemic's onset and have proven sticky even as walk-in locations have re-opened,” Fitch said in a statement.

However, the agency noted MoneyGram has new competitors, such as Venmo, Xoom and Remitly, that will challenge it.

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