Moody's downgrades ATI

Moody's Investors Service said it lowered ATI Acquisition Co.'s corporate family rating to Ca from Caa2 and probability of default rating to Caa3 from Caa2.

The agency also said it lowered the rating on its $17.5 million senior secured revolving credit facility due 2014 to Caa3 (LGD 4, 57%) from B3 (LGD 2, 29%); its $155.5 million senior secured term loan due 2014 to Caa3 (LGD 4, 57%) from B3 (LGD 2, 29%); and its $90 million subordinated credit agreement due 2015 to Ca (LGD 6, 93%) from Caa3 (LGD 5, 84%).

The outlook is negative.

The downgrade reflects the high risk of a debt restructuring due to a significant decline in the student population stemming from regulatory actions, an associated deterioration in operating performance and its highly constrained liquidity, Moody's said.

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