Moody's cuts Western Union to Baa2

Moody's Investors Service said it downgraded Western Union Co.'s and Western Union Financial Services, Inc.'s senior unsecured rating to Baa2 from Baa1 and affirmed the Prime-2 short-term rating.

The outlook is stable.

"Western Union's revenue and profit will likely face ongoing competitive pricing pressures and high compliance costs over the next several years," Moody's vice president-senior credit officer Stephen Sohn said in a news release.

"With this challenging environment, delays in achieving profit expansion, or even slower than expected revenue growth, will increase the risk of Western Union needing to return cash to shareholders."

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