SEC to MHP: Downgrading the U.S. was a Bad Idea
The McGraw-Hill Companies (NYSE:MHP) are facing a civil injunctive action against its unit Standard & Poor’s Ratings Services. According to the Company’s Form 8-K filing with the SEC, the punitive action addresses S&P’s ratings for a 2007 offering of CDOs known as ‘Delphinus CDO 2007-1’.
The SEC alleges the issue involved violations of federal securities laws, and it may seek civil money penalties, disgorgement of fees, and other appropriate equitable relief. The ‘Wells Notice’, as the communication from the SEC is known, is neither a formal allegation nor a finding of wrongdoing.
The McGraw-Hill Companies (NYSE:MHP) stock is trading at $41.85 today, down 2.52%. Shares are up 29.39% in one year. The stock’s trading range for the year is between $32.39 and $46.99.