On March 13, 2008, Standard&Poor's Ratings Services lowered its long-term counterparty credit rating on MoneyGram International to 'B+' from 'BB'. The company remains on CreditWatch with negative implications, where it was placed on Dec. 13, 2007. The downgrade is driven by the significantly increased debt service that MoneyGram will have to bear if it completes its recapitalization as currently contemplated. The CreditWatch Negative listing accounts for the possibility that the deal may not be completed as currently envisioned or at all. The recapitalization would be partially financed with debt provided by affiliates of Goldman Sachs ($500 million) and other investors ($250 million). Combined with MoneyGram's existing credit agreements ($350 million), total outstanding debt could reach as much as
