Standard & Poor's parent company splits
Credit ratings agency Standard & Poor's is moving under a smaller umbrella corporation. Parent company McGraw-Hill is bifurcating operations, with each separate company renamed. The two companies will be called McGraw-Hill Markets and McGraw-Hill Education. McGraw-Hill Markets will keep cash cow S&P. This includes the credit ratings arm and S&P Indices, the world’s leading index business. Also included are the newly launched S&P Capital IQ, a multi-asset class data, research, benchmarks and analytics platform. Platts, the leading global provider of information and indices in energy, petrochemicals and metals will also operate under McGraw-Hill Markets. These businesses combined represent 90% of the annual revenue to McGraw-Hill Markets. Terry McGraw will serve as chairman, president and CEO. In a statement, the company expects to drive double-digit growth and profitability by "expanding upon and fully exploiting the many operational and strategic synergies that exist among McGraw-Hill Markets’ brands." The new firm intends to overlap its customer bases and share technology platforms in order to grow its access to global capital markets. "There is a growing need for investors to be able to track price movements across all asset classes. At the same time, there is a dearth of tools which meet this need," McGraw-Hill said. McGraw-Hill Education, the second largest education company in the world, will become an independent business operating in the K-12, higher education and professional education markets. Write to Jacob Gaffney. Follow him on Twitter @jacobgaffney.