February 7, 2013 / 10:21 PM / 5 years ago

Fitch cuts McGraw-Hill rating, could cut further

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.

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