Seems Moody's was none too impressed with the increase in digital subscriptions: https://finance.yahoo.com/news/cengage-learning-inc-moodys-downgrades-222805085.html
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I could be mistaken, but I believe we've had a Caa3 rating in the past, which is to say: It's been worse.
Moody’s downgraded McGraw and Pearson to negative as well. Cengage’s outlook was viewed as worse because of its debt ratio, but both Cengage and McGraw saw their rating drop to Caa2, negative outlook. Prime concerns seems to be the predicted enrollment drop that all educational publishers are facing. Hard times for all who love working in educational publishing.
Good luck paying back that $1.3bb loan that comes due next year.