Moody's on Aug. 29 assigned German payment processor Wirecard AG a first-time Baa3 long-term issuer rating, with a stable outlook.
The rating takes into account the company's strong position in the European and Asian markets, its strong financial profile with very high margins and good liquidity profile.
The rating also factors in the threat of competition from new entrants, the risk of regulatory and technological changes and pricing pressure as payment processing continues to become more of a commodity. Wirecard is smaller in scale compared to U.S.-based competitors, however, the company has a well-diversified business profile in terms of products, geographies and customers, the agency noted.
