S&P Global Ratings downgraded its long-term issuer credit rating on MoneyGram International Inc. to B from B+ after the money transfer company lowered its earnings guidance for 2018 and said its deferred prosecution agreement with the U.S. Department of Justice will be extended for an additional 30 months.
S&P also lowered its issue rating on MoneyGram's senior secured credit facility due 2020 to B from B+.
MoneyGram recently reported a net loss of $20.9 million in the third quarter and expects a 10% decline in 2018 constant currency revenue and a 15% drop in adjusted EBITDA on a constant currency basis.
S&P gave MoneyGram a stable outlook, which reflects the rating agency's expectation that the company will operate with debt to EBITDA between 5.5x to 6.0x. The company is also expected to successfully amend its senior secured credit facility financial covenants and continue to improve its compliances functions.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings document referred to in this news brief can be found here.
