S&P puts Cambium on watch

Standard & Poor's said it placed on CreditWatch with negative implications Cambium Learning Inc.'s B corporate credit rating and its B+ ratings for the $128 million term B bank loan due 2013 and $30 million revolving credit facility bank loan due 2013.

The watch reflects the company's weakening operating performance and rising debt leverage. If sustained, these factors could jeopardize the company's ability to comply with its bank debt covenant levels, according to the agency.

The rating assigned in March anticipated modest EBITDA growth and debt reduction, which have not occurred, S&P said. Its debt-to-EBITDA ratio grew to 8.4 times at Sept. 30 from a pro forma level of 7 times at the time of the March leveraged buyout of the company.

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