S&P: Education Management unaffected

Standard & Poor's said Education Management LLC's ratings are unaffected by news that the U.S. Justice Department intervened in an existing whistle-blower lawsuit regarding compensation of two former marketing employees originally filed in 2007.

The agency said this will not affect the company's ratings at this time.

However, there could be future negative rating repercussions if it becomes apparent that the lawsuit will place additional stress on a company in an industry experiencing sharply negative new student enrollment and profitability trends, S&P said.

Education Management has outperformed many of its peers during a time of more stringent regulation and has not seen steep declines in enrollments, the agency said.

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