Moody's cuts Knowledge Universe

Moody's Investors Service said it lowered Knowledge Universe Education LLC's corporate family and probability of default ratings to B3 from B2 and the rating on the $260 million senior subordinated notes due 2015 to Caa1 from B3.

The outlook was revised to stable from negative.

Moody's said the downgrade reflects continued pressure on Knowledge's same center revenues and enrollments, owing to elevated unemployment levels and the generally soft macro environment.

As a result, profitability has deteriorated such that debt to EBITDA has increased above 6x.

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