Fitch Cuts MoneyGram To ‘B-‘ As Revenue Slide, Digital Lag Deepen Credit Concerns

Global money transfer company MoneyGram International, Inc. has had its Long-Term Issuer Default Rating (IDR) cut to ‘B-‘ from ‘B’ by Fitch Ratings, which also downgraded the company’s revolving credit facility, term loan, and first-lien secured bonds to ‘B’ from ‘B+’, with a Recovery Rating of ‘RR3’ maintained.

The rating outlook is stable, according to Fitch, which said the downgrades reflect expectations that MoneyGram will continue operating beyond the agency’s EBITDA leverage negative sensitivity threshold, as revenues face sustained pressure across both its retail and digital payments arms.

The agency also cited the company’s heavy reliance on money transfer services — a narrower business mix compared with more diversified, higher-rated fintech peers — as well as its smaller operational scale and weaker cash flow profitability.

MoneyGram’s revenue fell 11% in the 2025 financial year, driven primarily by transfer restrictions in one of its Middle East markets and reduced interest income. Fitch projects revenues to remain flat or eke out only modest gains over its forecast horizon.

Approximately 55% of the company’s revenue flows through its retail channel, a segment that has been losing ground as consumers gravitate toward digital money transfer platforms. Intensifying competition has also squeezed take rates, compounding the revenue challenge.

Adding to the headwinds, tighter U.S. immigration enforcement — including a marked increase in deportations — threatens to dampen transaction volumes along key remittance corridors. Fitch flagged this as a meaningful risk factor that could suppress volumes beyond what baseline projections currently account for.

Fitch forecasts that MoneyGram’s EBITDA leverage will hold in the mid-5.0x range through 2027, even as EBITDA margins are expected to improve gradually.

The agency noted that metrics could soften if the company successfully executes its cost reduction initiatives and expands digital revenue under its omnichannel strategy — but cautioned that the timing and magnitude of any improvement remain UNCERTAIN.

“The money transfer industry remains highly competitive,” Fitch noted, pointing to tech-forward rivals such as Venmo, Xoom, Remitly, and Wise PLC — rated ‘BBB/Stable’ — which continue to challenge MoneyGram across multiple international corridors.

MoneyGram was an early laggard in the shift to digital money transfers, ceding market share to faster-moving entrants during a critical adoption window.

The company has since pivoted to close the gap, investing in mobile wallets as well as online and mobile deposit channels as part of its broader digital build-out.

Fitch acknowledged that slower digital uptake in certain international markets continues to support the value of MoneyGram’s extensive agent network — particularly for cash-send and cash-receive transactions.

However, the agency noted that profitability in its digital partners channel remains under strain from lower take rates and intensifying competition, while growth on its proprietary MoneyGram Online platform has been modest.

On the positive side, Fitch noted that MoneyGram retains an established position in retail cross-border transfers and is actively working to build out its digital capabilities — factors the agency said partially offset the credit pressures reflected in the downgrade.