Cengage Learning, Inc.: Update to credit analysis

Cengage Learning, Inc.: Update to credit analysis - Credit Opinion – 2024/03/06 – US$ 250.00 – ...Cengage Learning, Inc.'s (Cengage) credit profile (B2 stable) reflects the company's high leverage (5.1x as of LTM 12/2023, as adjusted by Moody's) in a seasonal business tied to the academic calendar, intense competition and cyclicality related to higher education enrollment trends and macroeconomic conditions. Within its higher education business, the company's revenue growth continues to be pressured by secular industry trends, including affordability-driven price compression, continued competition from open educational resources, rental and used textbooks and a declining enrollment trend since the pandemic (though the latest fall 2023 enrollment turned positive ~1%). Nevertheless, Cengage's garners credit support from its well-established brand, good market position, long-standing relationships with education institutions, proprietary content developed through long-term exclusive relationships with leading authors and broad range of product offerings in higher education publishing....

Moody's affirms Cengage's credit ratings, rates new credit facility at B2; outlook stable - Rating Action – 2024/03/01 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Moody's upgrades Cengage's CFR to B2, affirms first lien term loan at B2; outlook stable - Rating Action – 2023/04/19 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Cengage Learning, Inc.: Update to credit analysis - Credit Opinion – 2022/12/19 – US$ 250.00 – ...Cengage Learning, Inc.'s (Cengage, B3 stable) credit profile reflects the company's high leverage in a highly cyclical and seasonal business, intense competition and execution risks associated with ongoing transition to a largely digital business model. Within its higher education business, the company's revenue growth continues to be pressured by secular industry trends, including declining enrollment, affordability-driven price compression and continued competition from open educational resources, rental and used textbooks. Nevertheless, Cengage's credit profile is supported by its well established brand, good market position, long-standing relationships with education institutions, proprietary content developed through long-term exclusive relationships with leading authors and broad range of product offerings in higher education publishing. The company's good liquidity position is supported by high cash balance and our expectation of positive free cash flow over the next 12-18 months,...

Cengage Learning, Inc.: Update to credit analysis - Credit Opinion – 2021/12/09 – US$ 250.00 – ...Cengage Learning, Inc.'s (Cengage, B3 stable) credit profile reflects the company's high leverage in a highly cyclical industry and intense competition. Within its higher education segment, the company's revenue growth continues to be pressured by secular industry challenges, including declining enrollment, affordability-driven price compression, and continued competition from open educational resources, rental and used textbooks. Nevertheless, Cengage's credit profile is supported by its well established brand, good market position, and long-standing relationships with education institutions, proprietary content developed through long-term exclusive relationships with leading authors and broad range of product offerings in higher education publishing. The company's good liquidity position is supported by high cash balance and our expectation of positive free cash flows over the next 12-18 months, with Moody's-adjusted FCF/Debt in the mid-single percentage range. The accelerated adoption...

Moody's rates Cengage's proposed term loan at B2 - Rating Action – 2021/06/16 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Cengage Learning, Inc.: Update following upgrade to B3: improving but still high leverage in a highly seasonal industry - Credit Opinion – 2020/12/16 – US$ 250.00 – ...Cengage Learning, Inc.'s ("Cengage", B3 stable) credit profile reflects the company's high leverage in a highly cyclical industry and intense competition among leading players especially as the market transitions to digital services from traditional learning materials. The company's business is highly seasonal with nearly three fourth of fiscal 2020 EBITDA generated in Q2 and Q4. Within its higher education segment, the company's revenue growth continues to be pressured by secular industry challenges, including affordability- driven price compression, open educational resources, rental and used textbooks. There is also a risk of delays in the K-12 state adoption spending because of budgetary constraints and the likely deferrals of purchasing decisions in the coming year. Nevertheless, Cengage's credit profile is supported by its well established brand, good market position, long-standing relationships with education institutions, proprietary content developed through long- term exclusive...