Standard&Poor's Ratings Services' ratings on MoneyGram International reflect the firm's lack of business diversification and high level of agent concentration in its Global Funds Transfer segment. Additional considerations include the operating margin of its money transfer business, which lags the market leader, and its exposure to regulatory risk. MoneyGram's solid market position in the money transfer industry is the primary positive ratings factor, in our view. The ratings also benefit from the company's improved financial profile since its recapitalization in 2011. The lack of business diversification and high level of agent concentration are key rating considerations. MoneyGram's core business is its Global Funds Transfer segment, which generates approximately 90% of total revenues. Moreover, the concentration of agents in
