STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

RE:RE:RE:RE:Dividend Cut Imminent

[Bigdaddy007]

There are many serious problems facing stb going forward, especially related to dividend sustainability. One issue that's not being discussed is the effect of higher interest rates. Stb is highly indebted and higher rates are going to squeeze the already thin margins, forcing management's hand on the dividend. Higher rates will likely be the cause of the second dividend reduction.