Moody's cuts MoneyGram

Moody's Investors Service said it lowered MoneyGram International, Inc.'s senior secured debt rating to Ba2 from Ba1 and affirmed the corporate family rating at B1.

The outlook is positive.

The downgrade follows a change in MoneyGram's debt capital structure, Moody's said.

The company redeemed about $175 million of its second-lien debt, financed by raising the amount of the senior secured debt, along with some cash, Moody's said.

The total debt amount did not change materially, the agency said, but the rating on senior secured debt benefits from a cushion of capital with lower priority of claim.

The ratings reflect the company's strong market position in the core money transfer business and a favorable long-term view of the worldwide money transfer industry, Moody's said.

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