THE DAILY CALLER: Seedy, Clinton-Backed For-Profit College Company Downgraded To JUNK BOND STATUS

Career College Central Summary:

  • Moody’s Investors Service has further downgraded a seedy, George Soros-backed for-profit college chain with deep ties to both Bill and Hillary Clinton.
  • The company is Laureate Education, an international conglomerate of aggressive, telemarketing-happy, for-profit colleges that is ensnared in controversy all over the globe.
  • Moody’s now rates Laureate at an investment grade of B3. The definition of a B3 rating is “highly speculative.” The bond rating giant advises that unfavorable economic circumstances “will likely impair” Laureate’s “capacity or willingness to meet its financial commitments.”
  • The B3 rating is the lowest incremental rating step above a group of “C” ratings, which Moody’s defines as “extremely speculative.”
  • “Laureate’s aggressive growth has created persistently-high leverage and has strained the company’s liquidity,” Moody’s analyst David Berge said in a statement last week.
  • Laureate, America’s largest private education company, is on a downward spiral with Moody’s. Last year, the ratings service downgraded the corporation to a B2 rating.
  • The company has been beset by charges of financial instability and unethical practices.
  • Recently, the U.S. Department of Education announced that four of Laureate’s six U.S.-based schools are on an official list of colleges and universities at which regulators have uncovered notable financial problems. Schools on the list are penalized by having restricted access to federal funds.

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