Fitch: Western Union notes A-

Fitch Ratings said it assigned an A- rating to Western Union's $400 million of 3.65% senior notes due August 2018.

The outlook is stable. Western Union's A- issuer default rating, A- senior debt, A- senior credit facility, F2 short-term issuer default rating and F2 commercial paper remain unchanged.

Fitch expects proceeds from the offering will effectively be used to refinance a portion of the company's $700 million of 5.4% senior notes due November.

The ratings consider the company's extensive domestic and growing international agent network with a strong worldwide brand, revenue stability from strong global diversification and consumer exposure and an asset-light business model with a largely variable cost structure due to the company's network of agents, the agency said.

The ratings also consider event risk dominated by shareholder friendly actions, significant foreign-currency exposure given broad international diversification and the view that new payment technologies could challenge traditional remittance services, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.