NEW YORK, Feb 7 (Reuters) – Fitch Ratings on Thursday cut
McGraw-Hill’s credit rating and warned more cuts were possible
due to a lawsuit filed by the U.S. government against rival
rating agency Standard & Poor’s.
Fitch cut McGraw-Hill, S&P;’s parent company, to
BBB-plus from A-minus and put the company’s ratings on review
for another possible downgrade.
The rating cut reflects the government’s suit as well as
related state suits and the potential impact on operations,
Fitch said in a statement.
The U.S. government is seeking $5 billion in its civil
lawsuit accusing Standard & Poor’s of a flagrant scheme to
defraud investors, in one of the Justice Department’s most
ambitious cases tied to the financial crisis.
Shares of S&P; parent McGraw-Hill Companies Inc have
since plunged.
