First Data Corp, Atlanta has not done any harm to its credit rating with its move to acquire the Western Union Financial Services Inc arm of New Valley Corp: Moody’s Investors Service Inc confirmed the senior unsecured rating at A3, affecting some $200m of debt, and it also assigned prospective ratings to the $300m shelf registration. Moody’s says that the ratings are assigned on the basis of its expectation that financing for the Western Union acquisition will be prudently structured to limit balance sheet impact, and that strong cash flow will enable the company to bring down its gearing quickly.
