The ratings on MoneyGram International (MoneyGram) are based on the company's solid position in the growing remittance market, its low leverage, and its relatively low exposure to credit and liquidity risk, which are typically more pronounced in most financial companies. Offsetting rating factors include the company's regulatory exposure, interest rate risk (IRR) profile, and agent/client concentration. MoneyGram has a solid position in the growing remittance market, which has experienced an expansion rate in the high single digits since 2000. MoneyGram's money transfer franchise consists of approximately 104,000 agent locations, second only to market leader Western Union. Robust remittance market growth has been attributable to increased worldwide migration, as people move outside their countries of origin in search of economic opportunity.
