S&P lowers MoneyGram

Standard & Poor’s said it lowered its issuer credit rating on MoneyGram International to B+ from BB-. The outlook is stable.

At the same time, S&P lowered its issue-level ratings on MoneyGram’s senior secured $980 million term loan and $150 million revolving credit facility to B+ from BB-. The recovery rating remains 3, indicating an expectation for meaningful (50%-70%) recovery for lenders in the event of a payment default.

“The downgrade reflects our revised forecast for 2015 EBITDA to decline by approximately 10%, incorporating the significant U.S. market share MoneyGram has lost in 2014 and the pricing actions the company introduced,” said S&P credit analyst Igor Koyfman in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.