S&P puts Global University Systems on watch

S&P said it placed its ratings on Global University Systems Holding BV, including the B issuer credit rating and the B issue-level rating on the company’s senior secured debt, on CreditWatch with negative implications.

“The CreditWatch placement reflects the heightened uncertainty regarding the impact of the Covid-19 pandemic and the possibility that a larger-than-expected decline in students’ demand could cause GUS to sustain adjusted leverage well above 7x for an extended period, with negative free cash flow,” S&P said in a news release.

“We expect the Covid-19 pandemic to strain revenue and EBITDA in the next 12 months.”

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