Moody's: DirectCash notes B3

Moody's Investors Service said it assigned B1 corporate family and probability of default ratings to DirectCash Payments Inc.

Moody's said the ratings are in connection with financing arrangements related to the recent acquisitions of Customers Ltd. in Australia and InfoCash Holdings Ltd. in the United Kingdom.

The outlook is stable.

At the same time, Moody's assigned a B3 rating to the company's C$125 million seven-year senior unsecured notes.

Moody's also assigned an SGL-2 speculative grade liquidity rating.

The rating action stems from a significant acquisition, which accounts for the company's somewhat limited financial flexibility, execution risks related to pending and recently completed acquisitions, and the potential of acquisition activity continuing for the foreseeable future such that debt repayment is significantly deferred, the agency said.

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