...- Enrollments and capacity utilization at Spring Education Group Inc.'s schools have been lower because of the COVID-19 pandemic. - We anticipate revenue and adjusted EBITDA will decline in the low- to mid-single-digit percentage range during fiscal 2021 (ended June 30) from lower enrollment and utilization rates and higher than expected school closures. As a result, we expect free operating cash flow (FOCF) to remain negative and adjusted leverage to remain elevated at about 11x. - We are lowering our ratings on Spring Education, including the issuer credit rating to '###+' from 'B-'. - We are also lowering the issue-level ratings on the company's first-lien debt to '###+' from 'B-' and on its second-lien term loan to '###-' from '###'. - The stable outlook reflects our expectation that revenue and EBITDA will strengthen during the second half of the fiscal year ending in June 2021 and into 2022 on improving enrollments and utilization rates, and the return of closer to historical EBITDA...
