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Chinese Tutoring Firm New Oriental Downgraded to Cusp of Junk

New Oriental Education & Technology Group Inc. offices in Beijing.

New Oriental Education & Technology Group Inc. offices in Beijing.

Photographer: Nelson Ching/Bloomberg

A bellwether for China’s listed tutoring firms suffered a credit rating downgrade, following a recent crackdown on the nation’s private education firms.

New Oriental Education & Technology Group Inc.’s score was cut to Baa3 from Baa1 by Moody’s Investors Service on Tuesday. Baa3 is the lowest investment-grade rating, just one step away from junk territory at the credit assessor.