S&P rates Euronet loan BB, convertibles B+

Standard & Poor's said it assigned its BB long-term counterparty credit rating to Euronet Worldwide Inc.

The outlook is stable.

At the same time, the agency said it assigned a bank loan rating of BB to the company's $190 million senior secured bank loan and $75 million revolver, indicating that there may be substantial, but not complete, recovery of principal in the event of a payment default.

S&P added that Euronet's $140 million of unsecured convertible senior notes were rated B+ and its $175 million unsecured subordinated convertible notes were rated B+.

According to the agency, the ratings on Euronet are driven by strong, high-quality earnings, strategic advantages because of its first mover position in multiple markets, and our belief that funding will be solid following its acquisition of Ria Envia later in 2007 while offsetting factors include negative tangible equity levels, high debt relative to earnings and exposure to exchange rate fluctuations.

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