Moody’s rates MasterCard notes A2

Moody's Investors Service said it assigned an A2 rating to MasterCard Inc.’s proposed senior unsecured note issuance.

The outlook is stable.

Net proceeds are expected to be used for general corporate purposes, including growth investments and share repurchases.

With MasterCard's proposed debt issuance, Moody's said it expects the company's leverage will remain low within the long-term target of 1 time or less adjusted debt to EBITDA.

The A2 rating benefits from MasterCard's strong market position within the payment ecosystem, globally recognized brand, very high barriers to entry and favorable long-term growth prospects created by the secular trend toward electronic payments, the agency added.

The rating is also supported by a customer base of banks secured by long-term contracts and strong operating performance driven by growth in volumes processed through the company’s highly scalable processing platform.

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