S&P: Pearson PLC ratings unaffected by sale of Financial Times Group
Financial Times Group

PRESS RELEASE: LONDON (Standard & Poor’s) July 24, 2015–Standard & Poor’s Ratings Services said today that its ratings and outlook on U.K.-based media and education group Pearson PLC (BBB+/Stable/A-2) are not affected by the company’s announcement that it has agreed to sell FT Group to Nikkei Inc. for a gross consideration of £844 million, payable in cash.

Although the transaction will result in moderate credit measure improvements, we forecast credit metrics to remain in line with our rating expectations of adjusted debt-to-EBITDA in the 2.0x-3.0x range and free operating cash flow to debt of 15%-25%. Under Standard & Poor’s policies, only a Rating Committee can determine a Credit Rating Action (including a Credit Rating change, affirmation or withdrawal, Rating Outlook change, or CreditWatch action).

This commentary and its subject matter have not been the subject of Rating Committee action and should not be interpreted as a change to, or affirmation of, a Credit Rating or Rating Outlook.

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