S&P upgrades Kuehg

S&P said it raised all its ratings for Kuehg Corp. by a notch, including its senior secured debt rating to B- from CCC+.

“Operating performance has recovered more rapidly than we expected, and we now view the capital structure as sustainable. The company's operating performance was better than we expected, and we expect it to remain good over the next 12 to 24 months based on tuition increases and enrollment growth as center occupancy levels recovers to pre-pandemic occupancy levels of around 70%. The company reported center occupancy of 62.5% in 2021, which was up from 47% in 2020, and average weekly full-time enrollments increased approximately 34%, but still 90% of 2019 levels,” the agency said in a press release.

S&P said it estimates Kuegh’s revenue growth in the 9%-10% range and EBITDA to grow about 7%-9% in 2022.

The outlook is positive.

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