MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it
placed the ratings on H&R Block Inc., including the 'BBB-' long-term
counterparty credit rating, on positive watch citing momentum the company has
achieved by successfully exiting the subprime mortgage business.
"Changes in corporate governance have resulted in renewed management focus
on H&R Block's core tax operations. The company's liquidity position has also
improved, the reduction in short-term obligations has reduced leverage and
improved the term structure of the company's liabilities," S&P said.
The ratings may be raised if H&R Block delivers solid results from its
continuing operations for fiscal 2008, works toward restoring tangible
capitalisation to acceptable levels, resolves the regulatory capital issues and
presents a clear indication of management's future operating and financial
strategy, S&P said.
TFN.newsdesk@thomsonreuters.com
sim/ssa
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