Break-up unlocks value

MCGRAW-HILL COMPANIES INC. $43 (New York symbol MHP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 301.3 million; Market cap: $13.0 billion; Price-to-sales ratio: 2.1; Dividend yield: 2.3%; TSINetwork Rating: Average; www.mcgraw-hill.com) plans to split into two separate, publicly traded companies.

One of these new firms, McGraw-Hill… Read More

Need for credit ratings still strong

Right now, the U.S. credit-rating industry is dominated by three firms: Standard & Poor’s (which is owned by McGraw-Hill, below), Moody’s and Fitch. However, Standard & Poor’s recent downgrade of U.S. Treasury bonds has drawn new attention to the entire industry. This increased scrutiny makes… Read More

McGraw-Hill Companies Inc. $38 – New York symbol MHP

MCGRAW-HILL COMPANIES INC. $38 (New York symbol MHP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 307.0 million; Market cap: $11.7 billion; Price-to-sales ratio: 1.9; Dividend yield: 2.6%; TSINetwork Rating: Average; www.mcgraw-hill.com) gets 70% of its earnings and 45% of its revenue from its Standard &… Read More

Market dominance gives them an edge

New regulations in the wake of the financial crisis will push up costs for these three leading credit-rating providers. However, they face little competition, and they continue to benefit from falling computer costs and the shift to electronic document delivery. These savings are also letting… Read More

New rules benefit established providers

Under the new financial-reform law, the Securities and Exchange Commission will develop rules to prevent conflicts of interest in the credit rating industry. The law also creates new standards for credit analysts, including passing qualifying examinations.

The new law will raise these three rating providers’ costs… Read More