Jefferies Reports McGraw-Hill To Realign Financial Services Division

McGraw-Hill MHP reported this afternoon that Financial Services would be realigned into two segments: S&P and McGraw-Hill Financial. The company also announced that Jack Callahan Jr. will succeed Robert Bahash as CFO. Standard & Poor's, the credit rating agency, will be headed by Deven Sharma as President. McGraw-Hill Financial includes S&P indices, Capital iQ, Valuations & Risk Strategies, and MarketScope Advisor, and will be headed by Lou Eccleston as President. Callahan most recently served as CFO of Dean Foods and held senior mgmt roles at PepsiCo, GE, and McKinsey & Co. Bahash served successfully as CFO from 1988 to 2010. Bahash will stay on with McGraw-Hill, becoming the new President of McGraw-Hill Education. Bahash previously managed information technology and digital initiatives, so we expect he will continue to build on digital platforms in the Education segment. Jefferies has a PT of $43 and Buy rating on MHP MHP closed Monday at $36.60