Fitch Downgrades MoneyGram On Declining Revenue

Fitch Ratings has downgraded MoneyGram International, Inc., citing sustained pressure on its earnings and weak revenue outlook amid intensifying competition in the global payments space.

Fitch lowered MoneyGram’s Long-Term Issuer Default Rating (IDR) to ‘B-’ from ‘B’, while also downgrading its revolving credit facility, term loan and senior secured bonds to ‘B’ from ‘B+’, all with a Recovery Rating of ‘RR3’. The outlook remains stable.

The downgrade, according to Fitch, reflected expectations that the company will continue to operate outside its EBITDA leverage threshold, as revenues remain under strain across both its retail and digital segments.

MoneyGram’s performance has been weighed down by an 11 per cent decline in revenue in the 2025 financial year, driven largely by regulatory restrictions in a key Middle East market and weaker interest income. The company, which still derives about 55 per cent of its revenue from retail channels, is grappling with a steady migration of customers to digital platforms.

Fitch, in its ratings, noted that rising competition in the fintech ecosystem has also compressed transaction margins, as newer digital-first players steadily erode market share. It warned that tighter immigration policies in the United States, alongside stricter enforcement, could further dampen transaction volumes across major remittance corridors, adding to near-term revenue headwinds.

Despite ongoing cost-cutting measures and efforts to scale its digital offerings, Fitch projects MoneyGram’s leverage to remain elevated, hovering in the mid-5.0x range through 2027. While margins are expected to improve gradually, the pace and sustainability of recovery remain uncertain in a volatile macroeconomic environment.

The rating further highlighted structural challenges facing the company, including its relatively smaller scale and heavy reliance on money transfer services, which account for over 90 per cent of its revenue base.

Fitch noted that digital disruptors, including Venmo, Xoom and Remitly, are intensifying competition across key international corridors, further pressuring traditional operators like MoneyGram.