S&P rates Spring Education add-on B-

S&P said it affirmed the B- issuer credit rating on Spring Education Group (SSH Group Holdings, Inc.), along with the ratings on all its existing debt facilities.

The agency also assigned a B- rating and 3 recovery rating to the proposed senior secured add-on term loan.

S&P said it revised the outlook to negative from stable to reflect a view that the company's debt leverage will remain high at close to 9x.

Free operating cash flow will remain low until the end of fiscal year ended June 30,2020 after which Spring could see benefits from the realization of synergies and increasing campus utilization rates, the agency said.

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