S&P changes Study Group view to negative

Standard & Poor's said it revised its outlook on EDU UK Bondco plc (Study Group UK Ltd.) to negative from stable and affirmed its B- long-term corporate credit rating.

The agency also affirmed its B- issue rating on Study Group's senior secured debt. The 4 recovery rating remains unchanged, reflecting meaningful recovery prospects in the higher half of the 50%-70% range for creditors in the event of a payment default.

S&P said the outlook revision primarily reflects its expectation that Study Group's liquidity will weaken as a result of significant headroom tightening under the group's financial covenant to below 10% by year-end 2015 and the ensuing likely covenant breach by the end of December 2016, if the company does not take mitigating actions.

The agency therefore revised down its assessment of the group's liquidity to "less than adequate" from "adequate."

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