S&P rates Renaissance, credit

Standard & Poor's said it assigned its B corporate credit rating to Renaissance Learning Inc. The outlook is stable.

S&P said it also assigned BB- issue-level and 1 recovery ratings to Renaissance's $195 million senior secured credit facilities. The 1 recovery rating indicates S&P's expectation for very high recovery in the event of payment default, the agency said.

"The ratings on Renaissance reflect government budget headwinds and its highly leveraged financial profile," said S&P credit analyst David Tsui in a news release. "Renaissance's incumbency position in its fragmented niche market, highly recurring subscription revenue base, and good free operating cash flow characteristics are partly offsetting factors."

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