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Travelex Financing plc -- Moody's withdraws ratings of Travelex

·10 mins read

Rating Action: Moody's withdraws ratings of Travelex

Global Credit Research - 27 Aug 2020

London, 27 August 2020 -- Moody's Investors Service, ("Moody's") has today withdrawn the Ca corporate family rating (CFR) of a foreign currency exchange specialist TP Financing 3 Limited ("Travelex") and the company's Ca-PD/LD probability of default rating (PDR). Moody's also withdrew the Ca rating assigned to the E360 million guaranteed 8% senior secured notes due 2022 issued by Travelex Financing plc, a subsidiary of Travelex.

RATINGS RATIONALE

This rating action reflects that the rated notes are no longer outstanding following the agreement with the bondholders to equitize the bond as a result of which the bondholders of Travelex became its new shareholders. The new equity owners also advanced about GBP80 million to the company for immediate liquidity needs. In addition, the outstanding GBP90 million revolving credit facility was converted into a term loan. In line with Moody's practice, the agency is withdrawing ratings due to the rated obligation no longer being outstanding.

Domiciled in Jersey, TP Financing 3 Limited, a holding company owner of Travelex, an independent retail foreign exchange business, with a wide network of stores (more than 1,500) and ATMs (more than 1,100) concentrated in some of the world's busiest international airports and tourist locations in 30 countries. The company also provides wholesale foreign exchange currencies to central banks, financial institutions and travel agents and has partnerships with supermarkets, high street banks, travel agencies, hotels and casinos as a provider of outsourced foreign currency services.

REGULATORY DISCLOSURES

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Maria Maslovsky Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service Ltd. One Canada Square Canary Wharf London E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Peter Firth Associate Managing Director Corporate Finance Group JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Releasing Office: Moody's Investors Service Ltd. One Canada Square Canary Wharf London E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454

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