Fitch affirms Western Union

Fitch Ratings said it affirmed the Western Union Co.'s issuer default rating at A-, senior unsecured debt at A-, senior unsecured credit facility at A-, short-term issuer default rating at F2 and commercial paper program at F2.

The outlook is stable.

Western Union's strong and stable free cash flow conversion offsets the company's higher than average leverage for the rating category, Fitch said.

Historically, Western Union has converted upwards of 70% of EBITDA to free cash flow, the agency said. As a result, cash flow-based leverage metrics have been strong for the rating category, Fitch said.

The agency also said it believes that cash flow leverage metrics will remain below historical levels in 2011 and likely 2012 due to continued macro weakness and dividend payments.

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