S&P raises its issuer credit ratings on MasterCard Inc. (MA) to 'A/A-1' from 'A-/A-2,' outlook stable. "The upgrade is the result of an improved and, in our view, sustainable level of profitability and cash flow generation, which bolster the company's already healthy financial risk profile."
"MasterCard also has a very good business profile. The company has a valuable brand and holds the number two global market share position in electronic payments--important factors that contribute to its ability to generate strong cash flows through all stages of an economic cycle."
"MasterCard's business is highly scalable and exhibits a high degree of
operating leverage. Its operating performance benefits from the strong secular growth in gross dollar volume and the number of transactions processed through its systems. These have been key to the company's ability to increase its operating margin during the past several years to where it now exceeds 55%."
"The stable outlook reflects our expectation that MasterCard will maintain its strong number two global market position and continue to generate robust earnings and cash flows from operations."