S&P lowers Scholastic

Standard & Poor's said it lowered its ratings on Scholastic Corp.

The corporate credit rating was lowered to BB from BB+, the agency said.

The outlook is negative.

S&P said that the downgrade reflects weak operating performance in the fiscal fourth quarter ended May 31, resulting in a lower-than-anticipated increase in full-year earnings.

Moreover, S&P said it has concerns regarding the company's increasing business risk and uncertain long-term growth prospects, adding that the BB rating reflects the company's somewhat weakening business profile and volatile operating performance, partially offset by its niche position as a children's book publisher and seller, as well as its moderate capital structure.

© 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.