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McGraw Hill Financial Seeks To Increase Investment In CRISIL

NEW YORK, June 2, 2013 /PRNewswire-FirstCall/ -- McGraw Hill Financial (NYSE: MHFI) today announced it is making a voluntary open offer to acquire up to 15,670,372 shares, representing 22.23% of the total equity shares outstanding in CRISIL Limited, a global analytical company and India's leader in credit ratings and research. Full acceptance of the offer would increase McGraw Hill Financial's total stake in CRISIL to 75% from 52.77%.

The cash offer of INR 1210 or $21.42 per share represents a premium of 29% to the closing share price on May 31, 2013, and a premium of 12% to CRISIL's all-time closing high on the National Stock Exchange of India Limited (NSE). The offer also provides an attractive liquidity opportunity to current CRISIL shareholders. CRISIL's stock had an average daily trading volume of 32,551 shares cumulatively on the NSE and BSE during the last 12 months.

"The offer to increase our investment in CRISIL represents a vote of confidence in CRISIL, its Board of Directors, leadership team and talented employees, as well as the products and services CRISIL brings to market. The offer also represents a vote of confidence in the growth prospects of India and the other markets that CRISIL serves," said Harold McGraw III, Chairman, President and CEO of McGraw Hill Financial. "We intend to keep CRISIL a listed public, independent company to maintain the company's leadership and essential role across the Indian economy, and to preserve the entrepreneurial, growth-oriented spirit of the high-performing CRISIL team."

"Since 1996, we have had a productive relationship with CRISIL, which has demonstrated a durable record of strong top- and bottom-line growth," said Douglas Peterson, President of Standard & Poor's Ratings Services, a business unit of McGraw Hill Financial. "We look forward to continuing our collaboration and to supporting the ongoing growth of their businesses in India and internationally."

Full acceptance of the offer at current exchange rates values the total transaction at approximately $340 million. McGraw Hill Financial will finance the transaction with existing cash resources.

The tender offer period is expected to begin in July 2013 and conclude in early August 2013. All requirements and procedures under Indian law will be strictly followed.

The transaction would be immediately accretive to McGraw Hill Financial's earnings per share.

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