McGraw-Hill Facing Fraud Lawsuit Reports S&P Sales at Record

McGraw-Hill Cos., accused by the U.S. of misleading investors about the risks of mortgage bonds that helped ignite the credit crisis, reported the highest sales at its Standard & Poor’s unit since at least 2010, while posting a net loss because of the divestiture of its education unit.

McGraw-Hill reported a revenue increase of 22 percent at its financial operations to $1.23 billion in the fourth quarter, according to data compiled by Bloomberg. The New York-based firm posted a net loss of $216 million as it took a charge on its pending education division sale to Apollo Global Management LLC, classifying the unit as a “discontinued operation.” Bond sales from the U.S. to Europe and Asia climbed 20.4 percent last year to a record $3.96 trillion.