Compass Public Charter School, ID Debt Rating Lowered To #BB# On Criteria Review, Increased Spending

Stocks and Financial Services Press Releases Tuesday September 19, 2017 09:01
CHICAGO--19 Sep--S&P Global Ratings

CHICAGO (S&P Global Ratings) Sept. 18, 2017--S&P Global Ratings lowered to 'BB' from 'BB+' its long-term rating on the Idaho Housing and Finance Assn.'s series 2010A tax-exempt nonprofit facilities revenue bonds and 2010B taxable nonprofit facilities revenue bonds, issued for Compass Public Charter School (Compass). The outlook is stable. "We lowered the rating based in part on our 'U.S. Public Finance Charter Schools' methodology and our view of increased programmatic expenses in anticipation of further growth," said S&P Global Ratings credit analyst Bobbi Gajwani. The increased spending has pressured performance and coverage and likely will lead to a further softening in fiscal 2018.

We assessed Compass' enterprise profile as adequate, characterized by enrollment growth while maintaining high academic quality, a satisfactory waitlist and a high student retention rate. Management has carefully managed its growth without compromising class size or academic quality by investing in programmatic expenses ahead of enrollment growth. While the school received a grant which helped to offset some of the expenses associated with the expansion, financial performance weakened nonetheless.

We assessed Compass' financial profile as vulnerable, with low total revenues, thinning coverage, and liquidity that is more in line with 'BB' medians. We believe that combined these lead to an indicative stand-alone credit profile of 'bb' and a final rating of 'BB'. Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.globalcreditportal.com and at www.spcapitaliq.com. All ratings affected by this rating action can be found on the S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column.


Latest Press Release

TCEB unveils its 2019 strategy under a brand-new campaign Thailand: REDEFINE Your Business Events

TCEB today announced a launch of its new brand marketing communication campaign "Thailand: Redefine Your Business Events". The new campaign has prompted the bureau to redefine its role as an industry's partner for success. Tapping into the growing...

L1 Treasury จับมือ Airborne Capital ทุ่มทุน 250 ล้านดอลลาร์สหรัฐ เปิดตัว AltitudeOne Aviation

- AltitudeOne Aviation Ltd ("AltitudeOne Aviation") เป็นธุรกิจร่วมทุนที่เปิดตัวโดย LetterOne Treasury Services SA ("L1 Treasury") และ Airborne Capital Limited ("Airborne Capital") - AltitudeOne Aviation จะลงทุนในพอร์ตหลากหลายประเภท...

L1 Treasury and Airborne Capital Commit US$250m to Launch of AltitudeOne Aviation

- AltitudeOne Aviation Ltd ("AltitudeOne Aviation") is a venture launched by LetterOne Treasury Services SA ("L1 Treasury") and Airborne Capital Limited ("Airborne Capital") - AltitudeOne Aviation will invest in a diversified portfolio of in-production...

Photo Release: SCB takes local wisdom products nationwide at Rompo Market for Thai Way OTOP

To promote Thailand's local wisdom products, SCB has collaborated with the Community Development Department and OTOP Trader Thailand by organizing a "Rompo Market – Thai Way OTOPs" event to create a marketplace for famous OTOP products from every...

Photo Release: Bangkok Bank highlights #Bangkok Bank InnoHub Season 2 a global FinTech accelerator program at Digital Thailand Big Bang 2018

Bangkok Bank Director and Executive Vice President Dr. Thaweelap Rittapirom (4th from left) and Executive Vice President Than Siripokee (4th from right) welcomed Digital Economy and Society Minister Pichet Durongkaveroj (5th from right) to Bangkok Bank's...

Related Topics