Standard&Poor's Ratings Services' ratings on MoneyGram International are based on the company's solid position in the growing money-transfer market. The increased leverage that the firm incurred in its recapitalization, which closed in March 2008, offsets reduced financial risk from MoneyGram's rebalanced investment portfolio. Agent concentration in the Global Funds Transfer segment and regulatory exposure are mildly negative ratings factors. MoneyGram has a solid position in the growing remittance market, which has expanded in the high single digits since 2000. MoneyGram's money-transfer franchise consists of approximately 162,000 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.
