Fitch shifts Houghton Mifflin view to negative

Fitch Ratings said it changed the outlook to negative from stable and affirmed the B issuer ratings of Houghton Mifflin Harcourt Co. and the subsidiaries Houghton Mifflin Harcourt Publishers, Inc., Houghton Mifflin Harcourt Publishers Co., and HMH Publishers LLC.

Also, Fitch affirmed Houghton Mifflin's first-lien term loan and first-lien secured notes at BB-/RR2. Fitch does not rate Houghton Mifflin's asset-backed lending facility.

“The negative outlook incorporates the higher degree of uncertainty for the K-12 adoption cycle owing to the coronavirus pandemic and Fitch's concerns that federal, state and local budgets will be negatively affected, which may lead to reduced or delayed education spending,” the agency said in a press release.

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