Fitch affirms MoneyGram

Fitch Ratings said it has affirmed the issuer default ratings for MoneyGram International Inc. and MoneyGram Payment Systems Worldwide, Inc. at B+.

Fitch said it has also upgraded the following ratings for Worldwide: senior secured first-lien credit facility to BB+/RR1 from BB / RR2; and senior secured second-lien notes to B+/RR4 from B/RR5.

The outlook is negative.

The agency added that the negative outlook reflects expectations for continued global economic weakness negatively affecting remittance volumes which could reduce EBITDA to levels inconsistent with the company's financial covenants which limit senior secured leverage to 6.5 times through September 2009 and 6.0x through September 2010, and an implied minimum EBITDA level of about $150 million and $160 million, respectively.

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