Moody's: Viad downgraded

Moody's Investors Service said it downgraded the long-term ratings of Viad Corp. to Ba1 and withdrew the ratings after the spinoff of its payment services subsidiary, MoneyGram International Inc.

Moody's downgraded Viad's senior unsecured medium-term notes to Ba1 from Baa2 and its subordinated debentures to Ba2 from Baa3.

Moody's said the downgrade reflects the smaller scale of the new Viad going forward, the loss of its more stable and profitable payment services subsidiary that represented over 65% of consolidated operating profit, retention of the more economically sensitive and seasonal, lower margin convention and trade show services and travel businesses and retention of legacy liabilities from discontinued operations.

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