Fitch downgrades Reed Elsevier

Fitch Ratings said it downgraded Reed Elsevier plc’s and Reed Elsevier NV’s long-term issuer default ratings to BBB+ from A- and affirmed its short-term issuer default rating at F2.

The outlook is stable.

The agency also said it downgraded Elsevier Finance SA’s senior unsecured notes to BBB+ from A-, along with the senior unsecured notes issued by Aquarius + Investments plc to BBB+ from A-.

Reed Elsevier Capital Inc.’s senior unsecured notes also were downgraded to BBB+ from A- and Reed Elsevier Inc.’s senior unsecured notes were downgraded to BBB+ from A-. Reed Elsevier (Investments) plc’s senior unsecured notes also were downgraded to BBB+ from A-.

The downgrades were triggered by management’s propensity to accept slightly higher leverage levels to fund stronger shareholder remuneration, the agency said.

Reed has a high quality, balanced portfolio of businesses that are competitively well positioned and geographically diversified, Fitch added.

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