Aug. 13 at 1:52 AM
S&P Global Ratings downgraded Skillsoft to ‘CCC+’ from ‘B-’ and assigned a Negative Outlook, citing high leverage, weak historical revenue trends and refinancing risks ahead of the company’s 2028 debt maturities. The downgrade highlights concerns over Skillsoft’s ability to improve cash generation and reduce its debt burden despite recent restructuring efforts.
S&P expects adjusted leverage to remain around 7x EBITDA following the sale of the declining Global Knowledge business to Enduring Ventures. The transaction is expected to provide limited balance-sheet relief, while S&P forecasts only
$10 million-
$20 million of free operating cash flow over the next 12 months and fiscal 2027 revenue of roughly
$400 million.
The divestiture is viewed as a defensive move that allows Skillsoft to focus on its higher-margin Talent Development Solutions platform. S&P expects EBITDA margins to improve toward 20% in fiscal 2027.
$SKIL