S&P lowers Cambium Learning

Standard & Poor's said it lowered the rating on Cambium Learning Group Inc. to B- from B.

The outlook is stable.

The agency also said it lowered the rating on the company's senior secured notes to B- from B.

The recovery rating on this debt remains at 4, indicating 30% to 50% expected recovery in a default.

The downgrade reflects weaker-than-anticipated fourth-quarter operating performance, rising debt leverage and a concern that strained government budgets will continue to negatively affect the company's profitability and debt leverage, S&P said.

The ratings consider an expectation that leverage will remain relatively high, based on high product development costs and the weak outlook for education spending, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.