Moody's assigns A3 to MasterCard

Moody's Investors Service said it assigned first-time A3 long-term and Prime-2 short-term issuer ratings to MasterCard Inc.

The outlook is stable.

Moody's said MasterCard's A3 rating reflects its strong market position in the electronic payments space, globally recognized brand, favorable long-term growth prospects created by the secular trend toward electronic payments, considerable financial strength, and a highly scalable processing platform.

The rating is constrained, the agency said, by the current litigation and regulatory scrutiny with respect to interchange fees, which could significantly increase leverage if either an adverse legal ruling/settlement occurs or regulatory authorities mandate changes in pricing practice, which diminish the future profitability of the company.

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