Moody's may lower Scholastic to junk

Moody's Investors Service said it Scholastic Corp.'s Baa3 senior unsecured ratings on review for downgrade due to the company's weaker than expected operating margins reported for the third quarter ended Feb. 28.

The review will focus on Scholastic's fixed cost structure and growth prospects in children's book and education publishing and the level of investment and promotional costs necessary to achieve the company's revenue targets, Moody's said.

The agency added it will consider the cash required to complete Scholastic's announced plans to reduce overhead, close its Troll and Trumpet book clubs and rationalize facilities, relative to the amount and timing of anticipated cost savings from these actions.

© 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.