Wolter Kluwer's sale of education business likely to be credit neutral - Fitch |
|
|
|
Published
:
Wed, 21 Mar 2007 12:06
|
LONDON (AFX) - Fitch Ratings said Wolters Kluwer's proposed sale of its education business is likely to be credit neutral, adding that any rating outcome would depend on the final transaction structure and application of cash proceeds.Fitch considers it highly unlikely that Wolter Kluwer will use all the proceeds to pay back its debt, given that the company should be able to meet its target leverage by the current year end without this additional funding.Even if the company were to pay back all the proceeds to shareholders, the ratings agency has historically tolerated leverage above this at 'BBB' for the company, which implies that a downgrade is a rare possibility, Fitch said.'Though a relatively small contributor to total EBITDA, Wolters Kluwer's education business is the company's second most profitable,' says Richard Petit, associate director in Fitch's TMT group in London.The issuer default rating of Wolters Kluwer is 'BBB' with a stable outlook and the subordinated notes are rated 'BBB-'.newsdesk@afxnews.comami/tsm/fajCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
|
|
|
|
Print this Story
Fitch affirms Healthcare Realty ratings 