Bangkok--24 Nov--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'BBB-' long-term rating, with a stable outlook, to the Utah State Charter School Finance Authority's series 2010A and 2010B charter school revenue bonds. The bonds are secured by payments received from North Star Charter Academy.
"The rating reflects our view of the school's potential to lose its charter prior to the bonds' maturity, short institutional tenure, and moderate pro forma carrying charges," said Standard & Poor's credit analyst Chris Morgan.
We understand that the school will use the proceeds of the series 2010A and 2010B to purchase its current campus and eliminate exposure to escalating rental costs.
Located 23 miles south of Salt Lake City in Bluffdale, the K-9 school has served a stable student population of about 500 since fiscal 2007, its second year of operation.
The stable outlook reflects our view that the school's ample waiting list provides a measure of revenue flexibility should further state funding pressure materialize. We could raise the rating if the school's operations improve such that we believe that it will maintain good-to-strong debt service coverage and an adequate liquidity position. We could lower the rating if the school's liquidity position erodes further, particularly if evidence suggests that the school's net revenues are weakening.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Charter Schools, June 14, 2007
Complete ratings information is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact;
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Chris Morgan, San Francisco (1) 415-371-5032
Jennifer Hansen, San Francisco (1) 415-371-5035