Fitch lowers McGraw-Hill

Fitch Ratings said it downgraded the McGraw-Hill Cos., Inc.'s issuer default rating to A from A+.

Fitch also said it placed the ratings on Rating Watch negative.

The downgrade reflects the increased leverage that is likely to follow the company's strategic review of its portfolio and plans to announce significant actions in the second half of 2011, the agency said.

This concern has been compounded by the disclosure of JANA Partners LLC's 5% voting control over the company, Fitch said.

While the 5% voting control is not a material holding, the agency said it believes that the slow recovering stock price of the company may compel other potential investors to support aggressive strategic actions that could be detrimental to bondholders.

© 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.