Moody’s upgrades McGraw Hill

Moody’s Investors Service said it upgraded McGraw Hill LLC’s ratings, including its corporate family rating to B3 from Caa2, the company’s new credit facilities to B2 from B3 and new junior priority secured notes to Caa2 from Caa3.

The agency changed the outlook to stable from under review. These actions conclude the review for upgrade initiated Dec. 15, Moody’s said.

“The upgrades reflect the company’s successful completion of the refinancing consistent with the proposed terms. The refinancing is a strong credit positive because it eliminated near term refinancing risks and extended access to external liquidity without materially increasing cash interest expense or leverage.

The rating actions also consider McGraw’s solid operating performance in its seasonally important quarter ending Sept. 30. It typically generates over 50% of annual billings, which Moody’s said it expects will continue over the next 12-18 months.

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