S&P may lift Knowledge Universe, rates loan B-

Standard & Poor's said it placed its CCC corporate credit rating on Knowledge Universe Education LLC on CreditWatch with positive implications.

At the same time, the agency assigned the company's $342 million credit facility a B- issue-level rating (at the same level as the corporate credit rating), with a recovery rating of 3, indicating an expectation of meaningful (50% to 70%) recovery for lenders in the event of a payment default. The facility consists of a $267 million term loan due 2019 and a $75 million revolving credit facility due 2018.

"The CreditWatch listing reflects our expectation that KUE will be able to maintain adequate liquidity and a sufficient margin of compliance with financial covenants following completion of the refinancing as proposed, despite our view that profitability will remain weak, albeit slowly improving, and discretionary cash flow will stay slightly negative," said S&P credit analyst Hal Diamond in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.