Dec. 12, 2014, 12:49 PM
- In a deal valued at nearly $2B, Hearst Corporation will purchase another 30% interest in Fitch Group from Fimalac, which will retain a 20% interest in the ratings agency.
- Hearst CEO Steven Swartz: "Strategically, Hearst continues to diversify into data and information-based companies while growing its world-class media assets."
- McGraw Hill Financial (MHFI -1.3%) remains lower on the session, but has perked up since the news hit. Moody's (MCO -1.7%) has added a bit as well, though the reaction is more subdued.
- Source: Press Release
Dec. 8, 2014, 4:29 PM
- At issue are SEC charges S&P (MHFI -2%) bent rating criteria in 2011 in order to win business, and - if you believe stories the stories about Tim Geithner's fury - S&P's decision to downgrade the U.S. credit rating.
- S&P parent McGraw Hill Financial and the SEC have been in settlement talks for some time, with the SEC, reports Bloomberg, wanting the suspension as part of a deal.
- S&P is also facing a separate $5B suit filed by the DOJ over its inflating of ratings on residential mortgages.
- Shares are lower by 0.4% after-hours, following the sizable drop on the news late in the regular session.
Nov. 25, 2014, 2:46 PM
- "Not surprisingly, billionaires reduced their energy allocations (NYSEARCA:XLE) during Q3," says Direxion, unveiling the quarterly rebalance for the iBillionaire Index (which serves as the benchmark for the IBLN ETF). Attention was instead shifted to healthcare (NYSEARCA:XLV) and materials (NYSEARCA:XLB), with companies like Humana (NYSE:HUM) and Monsanto (NYSE:MON).
- Also added to the index: TMO, GM, FB, CBS, GOOG, MAS, APD, DAL, NOV, WHR, THC, ABBV.
- Dropped from the index: AIG, MCK, CTSH, MSI, RIG, CI, APC, GPS, MSFT, CMCSA, NFLX, MHFI, WMB, ICE.
- Outlying sectors: Consumer Discretionary (NYSEARCA:XLY) makes up 23.33% of the iBillionaire Index vs. 11.68% for the S&P 500, and Industrials (NYSEARCA:XLI) and financials (NYSEARCA:XLF) make up just 6.67% each of the index vs. 10.44 and 16.30 of the S&P 500, respectively. Consumer Staples (NYSEARCA:XLP) have zero representation in the index vs. 9.7% in the S&P 500.
- Previously: Direxion launched an ETF with iBillionaire today
Oct. 29, 2014, 9:44 AM
- Adjusted net income from continuing operations of $281M up 31% Y/Y; EPS of $1.02 up 32%.
- With the agreement to sell the Construction business, that units results have now been moved to discontinued operations. Accordingly, full year EPS guidance is cut to $3.78-$3.83 from $3.80-$3.90.
- Although no definitive settlement has been reached, McGraw Hill (MHFI +1.7%) takes a $60M charge over a regulatory investigation into ratings issued by S&P on six commercial real estate deals.
- Operations: S&P ratings services revenue of $604M up 12% Y/Y. Transaction revenue of $269M up 18%. Non-transaction revenue up 7%. S&P Capital IQ revenue of $311M up 6%. S&P Dow Jones Indices revenue of $143M up 15%. Commodities and Commercial Markets revenue of $227M up 7%.
- $607M of buybacks YTD; another 45.6M shares remain under authorization.
- Previously: McGraw-Hill Companies beats by $0.08, misses on revenue
Oct. 29, 2014, 7:17 AM| Comment!
Oct. 28, 2014, 5:30 PM
- ACCO, ADP, AIT, ALKS, ALLY, AMED, ARW, AUO, AVX, BAH, BDC, CCJ, CFR, CKSW, CMC, COT, CTCM, DXYN, ETN, EVER, EXC, GHM, GRMN, GT, H, HES, HSY, IACI, ISSI, JLL, LFUS, MHFI, MRGE, MTH, NVMI, OMG, PAG, PB, PSX, PSXP, PX, RES, RL, ROL, RYAM, SEE, SKYW, SO, SODA, SPW, SPWR, STM, TEL, TFX, UAM, UBSI, VLY, WEC, WLP, WM, XRAY
Oct. 23, 2014, 7:32 PM
Oct. 3, 2014, 3:31 PM
- At issue, according to a Bloomberg story, is the idea McGraw Hill Financial's (MHFI -0.3%) S&P unit - looking to win more bank business - failed to follow its own methodology in rating commercial-mortgage bond deals.
- Under investigation are six CMBS deals graded in 2011.
- The move by NY AG Eric Schneiderman makes his office at least the third to probe this matter (along with the SEC and the Massachusetts AG).
- S&P is also facing a separate $5B DOJ lawsuit for inflating ratings on RMBS, thus helping to precipitate the financial crisis.
Sep. 23, 2014, 2:31 AM
- McGraw Hill Financial (NYSE:MHFI) is selling McGraw Hill Construction to P-E firm Symphony Technology for $320M.
- CEO Douglas Peterson says the deal completes the company's reorganization plans to improve efficiency, after previously stating that the unit did not fit into the global reach of the rest of the portfolio.
- The transaction is expected to close in Q4.
- Previously: McGraw Hill Financial mulls strategic alternatives for McGraw Hill Construction
Sep. 10, 2014, 5:16 AM
- Standard & Poor's (NYSE:MHFI) and Markit (NASDAQ:MRKT) have been narrowed down as the final bidders for Barclays' (NYSE:BCS) index business, which could go for more than $1B. Sources tell Reuters that a winner can be announced within weeks.
- Barclays launched the auction of its Index, Portfolio and Risk Solutions business this summer, which contains a basket of more than 98 major indexes, including the well-known U.S. Aggregate Bond Index.
- Previously: Bloomberg, Markit eyeing Barclays' fixed-income index unit
Sep. 8, 2014, 11:53 AM
- McGraw Hill Construction doesn't fit in with the global reach of the rest of the portfolio (S&P, Platts, J.D. Power), says CEO Doug Peterson, presenting at the Barclays Financial Services conference, so MHFI continues to evaluate strategic alternatives for the business.
- Presentation slides
- He reiterates free cash flow guidance of about $1B this year, and the company has a goal for about the same in 2015 and 2016 as well.
- Adjusted full-year EPS guidance was lifted by a nickel two months ago to $3.80-$3.90.
Aug. 26, 2014, 4:48 AM
- The DOJ says that new documents submitted over its $5B lawsuit with Standard & Poor's (NYSE:MHFI) will show that its lawsuit was not filed in retaliation for S&P's downgrade of the country's debt.
- S&P requested the documents following the DOJ's lawsuit filed in February 2013, which accused the ratings agency of issuing inflated ratings and failing to downgrade MBSs before the 2008 financial crisis.
Jul. 31, 2014, 1:10 PM
Jul. 29, 2014, 7:13 AM| Comment!
Jul. 28, 2014, 5:30 PM
- ACI, AET, AGCO, AIXG, AKS, ALLY, AMAG, AMG, ARW, AUDC, AVX, AXE, BP, CARB, CAS, CNX, CPLA, CRS, CVLT, CYNO, DIN, DSX, ECL, ENTG, ETN, ETR, FDP, FIS, FSS, GLT, GLW, GNC, GTI, HCA, HMC, HRS, HW, ICON, IP, IPGP, ITW, KLIC, LVLT, MDC, MDSO, MDXG, MHFI, MLM, MMC, MRK, MSO, NCI, NEE, NLSN, NMM, NOV, NYT, OSK, PCAR, PFE, POR, RAI, RYN, SAVE, SIRI, SNCR, ST, TLM, TRW, UAM, UBS, UBSI, UDR, UPS, UTHR, VSH, WDR, WM, WYNN, XYL, YNDX
Jul. 23, 2014, 5:16 PM
- McGraw Hill Financial (NYSE:MHFI) discloses receipt of a Wells Notice from the SEC, meaning Commission staff is leaning towards recommending a some sort of enforcement action against S&P over alleged securities violations in conjunction with ratings on six CMBS deals in 2011.
- Source: Press Release
- Shares -1.5% AH
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