Western Union 2015 Annual Report Download - page 136

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Our business, financial condition, results of operations, and cash flows could be harmed by adverse rating actions by credit
rating agencies.
If our credit ratings are downgraded, or if they are placed under review or revised to have a negative outlook, our business,
financial condition, results of operations, and cash flows could be adversely affected and perceptions of our financial strength
could be damaged, which could adversely affect our relationships with our agents, particularly those agents that are financial
institutions or post offices, and our banking and other business relationships. In addition, an adverse credit rating by a rating
agency, such as a downgrade or negative outlook, could result in regulators imposing additional capital and other requirements
on us, including imposing restrictions on the ability of our regulated subsidiaries to pay dividends. Although our credit ratings
have been downgraded in the past, we still maintain an investment grade rating. Also, a downgrade below investment grade will
increase our interest expense under certain of our notes and any significant downgrade could increase our costs of borrowing
money more generally or adversely impact or eliminate our access to the commercial paper market, each of which could adversely
affect our business, financial condition, results of operations, and cash flows.
We may not realize all of the anticipated benefits from productivity and cost-savings and other related initiatives, which may
include decisions to downsize or to transition operating activities from one location to another, and we may experience
disruptions in our workforce as a result of those initiatives.
We have engaged in actions and activities associated with productivity improvement initiatives and expense reduction
measures. We may implement additional initiatives in future periods. While these initiatives are designed to increase productivity
and result in cost savings, there can be no assurance that the anticipated benefits will be realized, and the costs to implement
such initiatives may be greater than expected. In addition, these initiatives have resulted and will likely result in the loss of
personnel, some of whom may support significant systems or operations. Consequently, these initiatives could result in a
disruption to our workforce. If we do not realize the anticipated benefits from these initiatives, or the costs to implement them
are greater than expected, or if the actions result in a disruption to our workforce greater than anticipated, our business, financial
condition, results of operations, and cash flows could be adversely affected.
There can be no guarantee that we will continue to make dividend payments or repurchase stock.
For risks associated with our ability to continue to make dividend payments or repurchase shares, please see Part II, Item
5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Our ability to remain competitive depends in part on our ability to protect our brands and our other intellectual property
rights and to defend ourselves against potential intellectual property infringement claims.
The Western Union and WU brands, which are protected by trademark registrations in many countries, are material to our
Company. The loss of the Western Union or WU trademarks or a diminution in the perceived quality associated with the names
would harm our business. Similar to the Western Union and WU trademarks, the Vigo, Orlandi Valuta, Speedpay, Pago Fácil,
Western Union Payments, Quick Collect, Quick Pay, Quick Cash, Convenience Pay, Western Union Business Solutions and
other trademarks and service marks are also important to our Company and a loss of the service mark or trademarks or a diminution
in the perceived quality associated with these names could harm our business.
Our intellectual property rights are an important element in the value of our business. Our failure to take appropriate actions
against those who infringe upon our intellectual property could adversely affect our business, financial condition, results of
operations, and cash flows.
The laws of certain foreign countries in which we do business do not protect intellectual property rights to the same extent
as do the laws of the United States. Adverse determinations in judicial or administrative proceedings in the United States or in
foreign countries could impair our ability to sell our services or license or protect our intellectual property, which could adversely
affect our business, financial condition results of operations, and cash flows.
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