Moody's cuts Travelex

Moody's Investors Service said it downgraded the corporate family rating of TP Financing 3 Ltd. (Travelex) to Caa1 from B3 and the company's probability of default rating to Caa1-PD from B3-PD. Moody's also downgraded to Caa1 from B3 the rating assigned to the €360 million of 8% senior secured notes due 2022 issued by Travelex Financing plc, a subsidiary of Travelex. The outlook remains negative.

This rating action follows Travelex's announcement on Monday of about a £25 million reduction in underlying EBITDA in the first quarter of 2020 owing to the effects of the cyberattack suffered by Travelex on the New Year's Day 2020 and the reduction in travel due to the coronavirus outbreak.

Additionally, there have emerged material governance concerns with regard to the key shareholder of Travelex's parent company.

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