S&P demotes SkillSoft, rates loan BB, notes B-

Standard & Poor's said it lowered its corporate credit rating on SkillSoft plc to B+ from BB-.

This action follows the company's announcement that it has agreed to be acquired by a group of private investors, including Berkshire Partners, Advent International, and Bain Capital, for $1.1 billion in cash, the agency noted.

As a result of the LBO, leverage increases to the low-5x area from around 1x previously, S&P added.

At the same time, the agency said it removed the ratings from Creditwatch with negative implications, where they had been placed on Feb. 12.

The outlook is stable.

S&P said it also assigned an issue-level rating of BB with a recovery rating of 1 to SkillSoft Corp.'s proposed $365 million senior secured credit facility.

In addition, the agency said it assigned an issue-level rating of B- and a recovery rating of six to the senior unsecured notes.

"The rating on SkillSoft reflects both its high leverage and its narrow product focus within a fragmented and highly competitive market with low barriers to entry," said S&P credit analyst Joseph Spence.

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