S&P trims Bach Finance

S&P said cut its ratings on Bach Finance Ltd., the parent company of Nord Anglia Education, and its senior secured notes to B- from B. The notes were sold by Fugue Finance BV.

Despite showing strong growth in revenue and earnings from continued acquisitions and greenfield investments, the group failed to materially lower leverage in the financial year ending Aug. 31. S&P Global Ratings-adjusted debt to EBITDA closed at 11.8x. For a second consecutive period, the group's free operating cash flow has been negative. “We consider sound FOCF generation vital to maintaining a B long-term issuer credit rating,” S&P said in a press release.

The outlook is stable.

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