S&P rates MoneyGram loan BB-

Standard & Poor's said it affirmed its BB- issuer credit rating on MoneyGram International. The outlook remains stable.

At the same time, S&P assigned a BB- issue-level rating on the company's proposed $975 million senior secured credit facility.

The rating affirmation follows MoneyGram's announcement that it will issue a new $975 million senior secured credit facility, made up of a seven-year $850 million term loan B and a five-year $125 million revolver. The company will primarily use the proceeds to refinance its existing debt, which includes $325 million second-lien notes, with an interest rate of 13.25%, and a senior secured term loan B.

"We view the transaction favorably because it will reduce the company's interest expense and extend its debt maturities," said S&P credit analyst Igor Koyfman in a news release.

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