Dive Brief:

• Moody's Investors Service has downgraded its credit ratings outlook for Baltimore-based for-profit education firm Laureate Education Inc.
• Moody’s reports that it made the downgrade, from stable to negative, because of Laureate’s recent elevation in leverage due to debt-financed acquisitions.
• The concern is that Laureate’s debt levels will stay elevated as the company continues to grow for the next 12 months.

Dive Insight:

Laureate isn't the only company in this sector hurting right now, but the downgrade is telling. For-profit higher ed has been hit hard in the last few years by a number of factors like declining enrollments. Public scrutiny by lawmakers coupled with the potential for tighter regulations haven't helped their image much in the public eye. Some of these companies may not whether the storm over the next few years, and those that do will likely look a bit different.