Summary
S&P Global Inc. (formerly McGraw Hill Financial, Inc.) filed an 8-K on February 3, 2015, to disclose material definitive agreements related to significant settlements. The company, through its subsidiary Standard & Poor's Financial Services LLC, reached a comprehensive settlement with the United States Department of Justice and a group of 19 states, agreeing to pay a total of $1.375 billion in civil monetary penalties. This settlement resolves claims related to the company's ratings activities. In addition to the governmental settlements, the company also entered into a separate agreement with the California Public Employees' Retirement System (CalPERS) to resolve claims regarding ratings on specific structured investment vehicles, agreeing to pay $125 million. These settlements, totaling $1.5 billion, will be reflected in the company's fourth quarter and full-year 2014 financial statements, which were slated for release on February 12, 2015. Investors should note that the company states the agreements contain no findings of violations of law.
Key Highlights
- 1S&P Global Inc. (then McGraw Hill Financial, Inc.) entered into a material settlement agreement on February 3, 2015.
- 2The settlement involves the U.S. Department of Justice and 19 states, with a total payment of $1.375 billion in civil monetary penalties.
- 3A separate settlement was reached with CalPERS for $125 million concerning ratings on structured investment vehicles.
- 4The total aggregate payments from all settlements disclosed in this filing amount to $1.5 billion.
- 5The company states that the settlement agreements contain no findings of violations of law by the Company, S&P Financial Services, or S&P Ratings.
- 6The financial impact of these settlements will be recorded in the company's fourth quarter and full-year 2014 financial statements, to be released on February 12, 2015.
- 7The settlements are not subject to court approval.