S&P trims MoneyGram

S&P said it lowered its long-term issuer credit rating on MoneyGram International Inc. to B from B+. The outlook is stable.

At the same time, S&P also lowered its issue rating on MoneyGram's senior secured credit facility due 2020 to B from B+. The recovery rating of 3 indicates an expectation of a meaningful (50%) recovery in the event of default.

“The downgrade reflects declining operating performance, a larger-than-expected settlement related to its deferred prosecution agreement (DPA) with the Department of Justice (DOJ), implementation of new compliance monitors through May 2021, and our expectation of leverage staying between 5.5x-6.0x,” S&P said in a news release.

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