Moody's upgrades Learning Care

Moody's Investors Service said it upgraded Learning Care Group (US) No. 2 Inc.'s first-lien credit facilities to B2 from B3 and its second-lien term loan to Caa2 from Caa3. Concurrently, Moody's boosted the rating for the company's corporate family rating to B3 from Caa1 and probability of default rating to B3-PD from Caa1-PD.

“The upgrade of CFR to B3 reflects Moody's expectation that operating performance including enrollment and center occupancy rates will continue to recover in 2022 as the threat from the coronavirus pandemic subsides. Learning Care's lease adjusted debt-to-EBITDA leverage is in the mid 7x (including grants received under the American Rescue Plan in EBITDA) for the LTM period ended Dec. 30, 2021, and Moody's expects it will continue to decline to below 6x the next 12 to 18 months because of a recovery in enrollment and earnings as well as earnings from acquired centers,” the agency said in a press release.

The outlook is stable.

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