S&P affirms HM Rivergroup

Standard & Poor's said it affirmed its ratings, including the B- corporate credit ratings, on HM Rivergroup plc and its subsidiary, Riverdeep Interactive Learning USA Inc. and removed them from CreditWatch.

The affirmation was based on the company's April 2 release of audited financial statements for its two predecessor companies for the fiscal period ended Dec. 21, the agency said, adding that the ratings were originally placed on CreditWatch with negative implications on March 2, based on concerns about a possible delay in filing these financial statements.

The outlook is stable.

S&P added that the ratings on HM Rivergroup reflect heightened financial risk resulting from the company's December 2006 leveraged acquisition of Houghton Mifflin Holding Co. Inc.

S&P said it is also concerned about the deterioration in the combined group's credit measures and about challenges that may arise in integrating the two businesses.

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