Moody’s Ratings downgraded Skillsoft’s (NYSE:SKIL) corporate family rating to Caa2 from B3, citing persistent operational friction and unsustainable leverage ahead of its mid-2028 debt maturities. The agency shifted its outlook to stable from negative after a strategic divestiture and restructuring improved liquidity. Adjusted leverage remained about 8x on a cash EBITDA basis and 9.5x on a non-cash basis for the trailing 12 months ended July 2026. Skillsoft held more than $90 million in cash at the end of July 2026, while the divestiture of the cash-burning Global Knowledge unit and a $45 million cost-cutting program are intended to strengthen free cash flow. Moody’s said contract-based subscription revenue and cash-preservation measures should provide near-term stability, but the July 2028 maturity of Skillsoft’s senior secured first-lien term loan creates risk of a distressed restructuring or less favorable refinancing. Investors are likely to watch adoption of the AI-native Percipio platform, organic revenue growth and the company’s handling of its 2028 debt obligations; further operational deterioration could prompt additional downgrades.