S&P cuts Ascend Learning

Standard & Poor's said it lowered its corporate credit rating on Ascend Learning LLC to CCC+ from B-. The outlook is negative.

At the same time, S&P lowered its issue-level ratings on all existing debt by one notch, in conjunction with the agency's change to the corporate credit rating. The recovery ratings on this debt remain unchanged.

The downgrade reflects the company's weaker-than-expected operating performance, extremely high leverage, increasingly negative discretionary cash flow, and S&P's expectation that the company will need another amendment to its first-lien credit facility when the covenant steps down on March 31, 2014, despite S&P's expectation of modest revenue and EBITDA growth.

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