S&P ups Learning Care, rates loan B

S&P said it raised Learning Care Group (US) No. 2 Inc. to B from B- and assigned its planned $900 million first-lien senior secured term loan and $100 million revolving credit facility B issue-level and 3 recovery ratings (50%-70%; rounded estimate: 55%). Both loans will be due in 2028.

“The upgrade reflects our expectation that Learning Care's credit metrics will continue to strengthen on market tailwinds, with leverage declining below 6x for the next 12 months. Learning Care has benefitted from strong demand in the early childhood education market as unemployment remains low and dual-income families increase. In addition, grants through the U.S. American Rescue Plan Act (ARPA) has helped the company weather the impact of the Covid-19 pandemic. Learning Care received close to $170 million in grants in fiscal 2022, and we expect more than $100 million in fiscal 2023,” S&P said in a press release.

Learning Care will use the term loan to refinance its debt and pay related transaction fees.

The outlook is stable.

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