S&P affirms Laureate Education

S&P said it affirmed its ratings, including its B corporate credit rating, on Laureate Education Inc.

The outlook is stable.

The agency also affirmed the B+ issue-level rating on the company's senior secured credit facility and B- rating on the company's senior unsecured notes.

The 2 recovery rating on the credit facility indicates an expectation for substantial recovery (70%-90%; rounded estimate: 75%) in the event of a payment default. The 5 recovery rating on the notes reflects expectations for modest (10%-30%; rounded estimate: 20%) recovery.

S&P said the affirmation reflects the company’s relatively high but declining leverage, low free cash flow generation, meaningful capital spending and material exposure to regulatory, political and currency risks.

These risks are somewhat offset by the company's meaningful scale and broad geographic exposure globally, good brands and customer recognition in some of the markets in which it operates, and fair track record of enrollment growth, the agency said.

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