Cengage Learning, Inc.: Update to credit analysis

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...

Cengage Learning, Inc.: Update to credit analysis - Credit Opinion – 2023/04/24 – US$ 250.00 – ...Cengage Learning, Inc.'s (Cengage, B2 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 affordability-driven price compression, continued competition from open educational resources, rental and used textbooks and declining enrollment trend (although the most recent spring enrollment was up). Nevertheless, Cengage 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 the higher education space. The company's good liquidity position is supported by a high cash balance and Moody's expectation...

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...