How dare Moody's downgrade Houghton Mifflin Harcourt!
And who is Standard and Poor's, to state that Education Media Publishing Group is one of Europe's ten most likely to default?
Granted, the buyout was highly leveraged, but not so high as Moody's seems to think. Officials with HMH hold firm to the belief that earnings will see see growth in the double digits for the year just ended. So there.
The little minnow that swallowed the whale isn't sinking to the bottom, in spite of all the begrudgers and the nay-sayers. All the loan covenants aren't creating stress on liquidity, not at all.
Besides, if HMH can sell its trade division, that's a nice income right there so who's sinking to the bottom of the publishing pond?
It's not as if Standard and Poor's is all knowing or anything, and Moody's rating service has come into question now that the financial sector tanked in spite of positive ratings.
As long as there are people in need of educational materials, there's a glimmer of hope.
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