SSH Group Holdings, Inc. Assigned 'B-' Corporate Credit Rating; Issue-Level Ratings Also Assigned; Outlook Stable

U.S.-based SSH Group Holdings, Inc. (Spring Education Group), which will operate private for-profit schools at the pre-kindergarten through twelfth grade level, is issuing a new $575 million senior secured first-lien credit facility and a $225 million senior secured second-lien term loan to acquire Nobel Learning Communities Inc. and the Southern California schools of LePort Montessori. We are assigning our 'B-' corporate credit rating to SSH Group Holdings Inc. We are also assigning our 'B-' issue-level and '3' recovery ratings to the company's proposed senior secured first-lien credit facility, and our 'CCC' issue-level and '6' recovery ratings to the proposed senior secured second-lien term loan. The stable outlook reflects our expectation that the company's leverage will decline to the low 7x

...+ U.S.-based SSH Group Holdings, Inc. (Spring Education Group), which will operate private for-profit schools at the pre-kindergarten through twelfth grade level, is issuing a new $575 million senior secured first-lien credit facility and a $225 million senior secured second-lien term loan to acquire Nobel Learning Communities Inc. and the Southern California schools of LePort Montessori. + We are assigning our 'B-' corporate credit rating to SSH Group Holdings Inc. + We are also assigning our 'B-' issue-level and '3' recovery ratings to the company's proposed senior secured first-lien credit facility, and our '###' issue-level and '6' recovery ratings to the proposed senior secured second-lien term loan. + The stable outlook reflects our expectation that the company's leverage will decline to the low 7x area in 2019 and that the company will generate modest free operating cash flow (FOCF) due to stable enrollment growth and price increases. NEW YORK (S&P Global Ratings) July 9, 2018--S&P...

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