Moody's affirms ACE

Moody's Investors Service said it affirmed the Caa1 rating on the senior unsecured notes of ACE Cash Express.

The outlook is stable.

The affirmation is in conjunction with the $45 million offering of senior unsecured notes due 2014, which are an add-on to ACE's $175 million senior unsecured notes issued in September 2006.

ACE has a corporate family rating and a senior secured term loan B rating of B3.

Moody's said the ratings reflect the company's strong market position in the highly fragmented industry, strong operating cash flow, experienced management team, diversified product and geographic mix, and strong risk management and information systems infrastructure.

The ratings also reflect the credit challenges the company faces, including substantial leverage and debt service burden following its 2006 leveraged buyout, the agency said.

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