S&P rates Transworld Systems B

Standard & Poor’s said it assigned a B corporate credit rating to Transworld Systems Inc.

The outlook is negative.

The agency also said it affirmed the company’s B corporate credit rating on Aston Escrow Corp. and revised the outlook to negative from stable. S&P said it subsequently withdrew the corporate credit rating on Aston Escrow.

The negative outlook reflects the continued uncertainty regarding the company’s operating performance over the next few years, the agency said.

This includes the U.S. Department of Education’s decision not to provide the company with an interim contract extension, which represented more than 10% of its revenue as of March 31, S&P said.

The uncertainty about the company’s future performance stems from the competitive, regulatory and pricing pressures that have continued to affect Transworld’s operating performance over the past year, the agency said.

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