S&P ratings business drives McGraw Hill's profit beat

McGraw Hill Financial Inc reported a better-than-expected quarterly profit, driven by growth in its Standard & Poor's ratings unit due to a resurgent bond market.

The company also raised its full-year adjusted earnings forecast to $3.80-$3.90 per share from $3.75-$3.85 per share.

Revenue from the S&P business rose 11 percent to $664 million in the quarter, accounting for nearly half of McGraw Hill's total revenue.

Net income attributable to common shareholders from continuing operations rose 17 percent, to $292 million, or $1.06 per share, in the second quarter ended June 30.

Analysts on average had expected the company to earn 99 cents per share, according to Thomson Reuters I/B/E/S.

Total revenue rose 7.7 percent to $1.35 billion.

Global debt issuance rose 12 percent to $1.58 trillion in the quarter, according to Thomson Reuters data.

S&P rival Moody's Corp also reported a higher-than-expected quarterly profit last week, as revenue rose in its bond ratings business. Moody's raised its full-year revenue growth forecast.

McGraw Hill shares, which have risen 11 percent since the company last reported results in April, closed at $82 on the New York Stock Exchange on Monday.

Thomson Reuters Corp competes with McGraw Hill in providing information related to the financial and commodities markets. (Reporting by Amrutha Gayathri in Bangalore; Editing by Simon Jennings)