S&P assigns B+ to Global University bonds

Standard & Poor’s said it assigned its B+ long-term corporate credit rating to Global University Systems Holding BV. The outlook is stable.

At the same time, S&P assigned a B+ issue rating to the £234.4 million senior secured bond due 2020 issued by GUS' subsidiary, Lake Bridge International plc. The recovery rating on this bond is 3, indicating an expectation of average recovery in the event of a payment default, in the higher half of the 50% to 70% range.

S&P also assigned a BB issue rating, with a 1 recovery rating (90%-100% recovery in the event of a payment default) to the group’s £15 million super senior revolving credit facility.

S&P said the B+ rating assignment follows GUS’ acquisition of University of Law, a leading provider of legal education and training in the U.K., and the group’s use of a bridge loan to finance the deal. GUS is refinancing its existing debt, including the bridge loan, by issuing the £234.4 million senior secured bond.

“The rating mainly reflects our assessments of GUS’ business risk profile as ‘weak’ and its financial risk profile as ‘aggressive,’” S&P said in a news release.

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