Moody's ups, rates MoneyGram loans B2

Moody's Investors Service said it upgraded MoneyGram International Inc.'s corporate family rating from to B2 from B3 and speculative grade liquidity rating to SGL-2 from SGL-3. The agency affirmed the B3-PD probability of default rating.

The agency gave the planned first-lien secured credit facilities a rating of B2 and changed the outlook to stable from negative.

The proceeds from the issuance of the new first lien credit facilities and potential other secured debt will be used to refinance MoneyGram's first-lien and second-lien debt.

"MoneyGram's strategic actions have improved business positioning over the last 18 months, but competition is further intensifying and business portfolio dynamics remain highly complex," said Peter Krukovsky, a Moody's senior analyst, in a press release. "From this perspective, the recent equity capital raise, debt reduction and the pending refinance at lower interest rates provide the needed flexibility."

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