Cutting to Hold with price target of $80 (from $78) analyst Edward Atorino, calls McGraw Hill Financial's (MHFI) valuation "lofty," trading at 20x estimated 2014 EPS. It's a premium to the broad market, but inline with Moody's (MCO) even though MHFI is less dependent on bond ratings and may merit a higher P/E. As far as the business though, prospects remain good:
"With a continuing low interest rate environment, corporations should continue to issue new debt for capital expenditures, share repurchases, mergers and acquisitions, and refinancing. There remains a substantial amount of debt to be refinanced that ought to drive debt issuance through 2015. S&P estimates more than $1 trillion will be financed each year for the next several years."