MUMBAI (Thomson Financial) - Moody's Investors Service said it has assigned
first-time 'A1' long-term and 'Prime-1' short-term issuer ratings to Visa Inc.
with a stable outlook.
Moody's changed the outlook for Visa International Service Association (now
a wholly-owned subsidiary of Visa Inc.) to stable from negative as the
reorganization of the regional Visa entities and the successful IPO of Visa Inc.
has alleviated concerns about any potential deterioration in credit quality
arising from the loss of substantial implied support from its member banks
worldwide.
Moody's affirmed Visa International's ratings at 'A1' for the senior
unsecured long-term debt and 'Prime-1' for the commercial paper program.
Visa's 'A1' rating reflects its leading market position in the retail
electronic payments space, its globally recognized brand, the favourable growth
prospects created by the continuing shift from cash/check payment to electronic
payments, a stable customer base secured by long-term contracts, and a business
model with minimal credit risk.
The rating is supported by the Retrospective Responsibility Plan which
insulates the company from the most significant litigation exposures arising
prior to the reorganization of the regional Visa entities into Visa Inc, the
rating agency said.
The rating is constrained by ongoing legal and regulatory scrutiny, whereby
any changes to Visa's ability to set default interchange rates or compete in
certain geographic markets could threaten its market position and profitability.
The company also faces an increasingly competitive and changing landscape
arising from technological innovation and consolidation of merchants and bank
customers, Moody's said.
TFN.newsdesk@thomson.com
ans
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|