Moody's may cut McGraw-Hill

Moody's Investors Service said it placed McGraw-Hill Cos. Inc.'s A3 senior unsecured ratings on review for possible downgrade following news that the company plans to spin-off its education businesses.

McGraw-Hill plans to retain its operations focused on capital and commodities markets, the agency said.

McGraw-Hill's prime-2 commercial-paper rating is not affected.

Moody's said it will evaluate the loss of business and customer diversity resulting from the proposed spin-off of the education operations.

The agency said it will consider the effects of the spin-off of a significant portion of consolidated cash flow generation and the cyclicality of the retained businesses.

Moody's also said it does not expect McGraw-Hill's leverage to increase dramatically and anticipates the company will maintain a relatively conservative financial profile.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.