McGraw Hill Quiet on S&P

McGraw Hill (MHP) owner of the Standard & Poor's franchise reported downbeat results. Problems in both the educational and financial sectors contributed to disappointing results. The down draft in the financial and investment sector was to be expected. New transactions are off and the need for ratings is also off. What McGraw Hill neglected to cover was the potential for lawsuits and legal actions as a result of investor disappointment with their previous efforts in the ratings business.

Also, as the financial world continues to dig itself out of its self inflicted misery, what will S&P need to do in the future to maintain credibility and relevance. Some might accuse the analytical process of being much too superficial. If more due diligence is needed what does that do to the cost structure and pricing structure and therefore the sustainability of the S&P business model. Business as usual simply will not work in the future.

Corporate Executives are not switched on.