S&P: Laureate unchanged

Standard & Poor's said that its ratings on Laureate Education Inc. (B/negative/--) remain unchanged following the company's upsizing of its term loan A to $280 million from $200 million. The issue-level rating on the loan remains at B, and the recovery rating remains at 4, indicating S&P's expectation of average (30% to 50%) recovery for lenders in the event of a payment default.

Proceeds are expected to be used to repay borrowings under its revolving credit facility, which totaled $160 million as of June 30, 2009, and add to cash balances. The upsizing results in an increase in pro forma lease-adjusted gross debt to EBITDA at 8.5x for the 12 months ended June 30, 2009 from an actual level of 8.2x.

The outlook remains negative

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