(Corrects percentage change in paragraph 1 to 76 from 86;
corrects paragraph 2 to show profit from continuing operations
was $190 million, not $211 million)
Feb 12 McGraw-Hill Cos Inc, which is
being sued by the U.S. government for bond ratings issued by its
Standard & Poor's unit, said quarterly profit from continuing
operations rose 76 percent, driven by higher debt issuance.
The company's income from continuing operations rose to $190
million, or 67 cents per share, in the fourth quarter from $113
million, or 37 cents per share, a year earlier.
Revenue rose 22 percent to $1.23 billion.
McGraw-Hill had a net loss of $216 million during the
quarter. The loss includes one-time costs related to the sale of
its education unit to Apollo Global Management LLC in
The company had said it would take a non-cash impairment
charge of about $450 million to $550 million in the fourth
quarter to mark down the value of the unit.
The U.S. government filed a civil lawsuit against Standard &
Poor's earlier this month, alleging that the company had
inflated ratings associated with mortgage securities during the
"The Company believes the Department of Justice civil
lawsuit filed last week is entirely without factual or legal
merit and that the company has very strong defenses against this
and all pending litigation," it said in a statement.
McGraw-Hill's stock has lost nearly a quarter of its value
since the government launched the suit. The shares closed at
$44.28 on the New York Stock Exchange on Monday.
(Reporting by Aman Shah and Jochelle Mendonca in Bangalore;
Editing by Sreejiraj Eluvangal)