S&P assigns Cengage Learning loan B+

Standard & Poor's said it assigned Cengage Learning Holdings II Inc. a B corporate credit rating. The outlook is stable.

At the same time, S&P assigned subsidiary Cengage Learning Acquisitions Inc.'s $1.75 billion first-lien term loan due 2020 a B+ issue-level rating, with a recovery rating of 2, indicating an expectation for substantial (70%-90%) recovery of principal in the event of a payment default.

"The B corporate credit rating on Cengage Learning reflects our assessment of the business risk profile as 'weak' and its financial risk profile as 'highly leveraged' following the company's April 1, 2014, emergence from Chapter 11 bankruptcy protection and completion of its financial restructuring," said S&P credit analyst Hal Diamond in a news release.

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