"Moody's has shifted its outlook on (Pearson) to negative....Moody's reaffirmed its Baa2 senior unsecured rating, but has the company on watch due to the weaker-than-expected U.S. performance. "There is also little visibility on a pronounced recovery as Pearson's fundamental business model is likely to continue to be challenged by lower student enrollments and disruptive structural changes," the firm says. That has to be balanced against the "core strengths" of company titles and leading market share, it said. Moody's estimated that adjusted leverage at year-end 2016 could be around 3.9 times, higher than guidance for current ratings of sub-3.5 times."
http://seekingalpha.com/news/3236543-moodys-shifts-outlook-pearson-negative-reaffirms-rating