In 2021, S&P Global Ratings took more positive than negative rating actions on U.S. charter schools, reflecting increased flexibility resulting from growing demand throughout the COVID-19 pandemic and the impact of robust federal funding. The number of upgrades in 2021 (14) was greater than during the previous two years combined (eight in 2019 and four in 2020). Moreover, the number of downgrades in 2021 (eight) was the lowest seen for the past five years.
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As discussed in our 2022 sector outlook, "Outlook For Charter Schools: While Growing Demand And Stimulus Funds Provide Flexibility, Risks Persist," published Jan. 11, 2022, on RatingsDirect, demand is improving, with charter school enrollment increasing while traditional public school enrollment has fallen over the past year. Although charter schools faced pandemic-related challenges, generous emergency federal funding helped mitigate associated expenses and bolstered liquidity among the schools we rate. These factors and a healthy financing environment led to the assignment of 28 new ratings in 2021, compared with 23 in 2020.
Table 1
Charter Schools Ratings Initially Assigned | |||
---|---|---|---|
Institution | State | Rating | Outlook |
Academic Leadership Charter School | NY | BBB- | Stable |
Austin Achieve Public Schools | TX | BBB- | Stable |
Bright Star Schools | CA | BB+ | Stable |
Brighter Choice Charter School | NY | BB+ | Stable |
Brilla Public Preparatory Charter Schools | NY | BB+ | Stable |
Global Academy ABC | MN | BB | Stable |
Great Oaks Legacy Charter School | NJ | BB+ | Stable |
Hennepin Schools Building Co. | MN | BB- | Stable |
KIPP Jacksonville, Inc. | FL | BBB- | Stable |
KIPP NYC | NY | BBB- | Stable |
Lawndale Educational and Regional Network Charter School (LEARN) | IL | BBB | Stable |
LISA Academy | AR | BB+ | Stable |
Memphis Rise Academy Inc. | TN | BBB- | Stable |
Michigan Mathematics and Science Academy | MI | BB+ | Stable |
Mission Achievement and Success Charter School | NM | BB | Stable |
New Vision Charter School | CO | BBB- | Stable |
Palm Beach School for Autism Inc. | FL | BB+ | Stable |
Paramount School Of Excellence Inc. | IN | BB+ | Stable |
Penn Hills Charter School of Entrepreneurship | PA | BB | Stable |
Philadelphia Electrical and Technology Charter High School | PA | BB | Stable |
Seven Generations Charter Schools | PA | BB | Stable |
The Learning Choice Academy | CA | BBB- | Stable |
Tipton Academy | MI | BB | Stable |
Triad Educational Services | NC | BBB- | Stable |
Tulsa Honor Academy | OK | BB | Stable |
Urban Academy of Greater Pittsburgh Charter School | PA | BB+ | Stable |
Vista College Preparatory | AZ | BB+ | Stable |
Woodbury Leadership Academy | MN | BB- | Stable |
Table 2
Charter Schools Ratings Raised | ||||||
---|---|---|---|---|---|---|
Institution | State | Rating to | Rating from | Outlook to | Outlook from | Description |
Advanced Technology Academy | MI | BB+ | BB | Stable | Stable | Sustained improvement in MADS coverage and increase in days' cash on hand |
Caliber Public Schools | CA | BBB- | BB+ | Stable | Stable | Successful charter renewal and improved finances |
Cityscape Schools Inc. | TX | BBB- | BB+ | Stable | Stable | Improved financial performance and liquidity |
Classical Academy Inc. | CA | BBB- | BB+ | Stable | Stable | Consistent coverage and cash levels along with substantial enrollment growth |
Compass Academy Charter School Inc. | TX | BBB- | BB+ | Stable | Stable | Trend of improved operating performance, coverage, and liquidity position |
Detroit Service Learning Academy | MI | BB- | B | Stable | CreditWatch Developing | Resolution of contingent liquidity risk, charter renewal, and improved finances |
Eagle Ridge Academy | CO | BBB- | BB+ | Stable | Stable | Improved financial performance and liquidity position |
Evolution Academy Charter School | TX | B+ | B | Stable | Stable | Improved liquidity |
Jubilee Academic Center Inc | TX | BB+ | BB | Stable | Stable | Improved operations and MADS coverage |
Paterson Charter School for Science & Technology | NJ | BB | BB- | Positive | Stable | Meaningful improvement in financial operations and coverage |
Pine Lake Preparatory | NC | BBB- | BB+ | Stable | Stable | Improved balance sheet metrics and healthy margins and coverage ratios |
Texas Leadership Charter Academy | TX | BB | BB- | Stable | Stable | Five consecutive years of surpluses translating to improved MADS coverage |
Universal Academy | MI | BBB- | BB+ | Stable | Stable | Improved financial metrics following the school's refunding |
Universal Academy (LTTS Charter School Inc.) | TX | BB- | B+ | Stable | Stable | Improved liquidity and operations |
Table 3
Charter Schools Ratings Lowered | ||||||
---|---|---|---|---|---|---|
Institution | State | Rating to | Rating from | Outlook to | Outlook from | Description |
Eagle Advantage Schools Inc. | TX | BB+ | BBB- | Stable | Negative | Sustained enrollment declines and weakening operations |
Eagle South Mountain Charter School | AZ | BB | BB+ | Stable | Stable | Recent decline in enrollment and softer margins |
Higher Ground Academy | MN | BB+ | BBB- | Stable | Negative | Significant decline in the school's cash position with ongoing expansion risk |
Monument Academy | CO | BB | BB+ | Negative | Negative | Weakened financial ratios as a result of increased leverage associated with expansion to a second campus |
Navigator Pointe Academy | UT | BBB- | BBB | Stable | Stable | Weakened cash position |
River Heights Academy | MI | B- | B+ | Negative | Negative | Declining enrollment with an already small enrollment base and sharp decline in financial performance |
Vista Charter Public Schools Inc. | CA | BB | BB+ | Stable | Stable | Increased debt burden and weakened coverage with the issuance of significant new debt |
West Philadelphia Achievement Charter Elementary School | PA | BB- | BB | CreditWatch Negative | CreditWatch Negative | Heightened risk related to the charter framework given political tension with the authorizer |
Table 4
Charter Schools Outlook Revisions | |||||
---|---|---|---|---|---|
Institution | State | Rating | Outlook to | Outlook from | Description |
A.W. Brown Fellowship Charter School | TX | BB- | Negative | Stable | Ongoing enrollment declines causing MADS coverage to fall below 1x |
American Heritage Education Foundation | CA | BBB- | Negative | Stable | Challenging operating environment and volatile financial metrics |
Arizona Agribusiness & Equine Center Inc. | AZ | BB+ | Stable | Negative | Strong enterprise profile across the five campuses, improving financials with solid MADS coverage and days' cash on hand |
Avondale Meadows Academy | IN | BB | Stable | Negative | Expectation of financial stabilization |
Blackstone Valley Prep | RI | BB+ | Stable | Negative | Improving liquidity and pro forma debt metrics, coupled with recent trend of positive margins |
Castle Rock Lifelong Learning Center | CO | BBB | Stable | Negative | Expected improvement in state funding and enrollment and demand for fall 2021 |
Community Leadership Academy | CO | BB+ | Negative | Stable | Continued enrollment declines and weakened financial performance |
Creative Montessori Academy | MI | BBB- | Stable | Negative | Better-than-expected financial metrics, along with diminished risk related to the school's building project and its impact on reserves |
Detroit Service Learning Academy | MI | B | CreditWatch Negative | Stable | March 2021--Immediate refinancing risk associated with an upcoming bullet maturity |
Detroit Service Learning Academy | MI | B | CreditWatch Developing | CreditWatch Negative | June 2021--Possible refinancing plan to address bullet maturity with either continuation or resolution of refinancing risk |
Discovery Charter School | PA | BB+ | Stable | Negative | Strengthening financial metrics and healthy demand profile |
Explore Knowledge Foundation | NV | BB+ | Stable | Negative | Expected improvement in state funding and financial performance |
Golden Rule School Inc. | TX | BBB- | Negative | Stable | Declining margin trends and MADS coverage over past two audited fiscal years |
Granada Hills Charter Obligated Group | CA | BBB- | Positive | Stable | Improved financial performance and enrollment growth |
Harmony Public Schools | TX | BBB | Positive | Stable | Improving financial metrics amid continued expansion |
Hmong Education Reform Company | MN | BB+ | Negative | Stable | Elevated governance risk under our ESG factors |
Holly Academy | MI | BB+ | Negative | Stable | Maximum annual debt service coverage below 1x |
Holly Academy | MI | BB+ | Stable | Negative | Improving debt profile from expected refinancing and projected per pupil funding increases |
Horizon Community Learning Center | AZ | BB+ | Stable | Negative | Improving financial performance and liquidity position |
Idea Public Schools | TX | A- | CreditWatch Negative | Stable | Elevated governance risk under our ESG Factors |
IDEA Public Schools | TX | A- | Negative | CreditWatch Negative | Continued uncertainty associated with ongoing TEA investigation and notable management transitions |
Legacy Traditional Schools | AZ | BB+ | Positive | Stable | Improving operating margins and MADS coverage, with solid enrollment growth and demand |
Mater Academy of Nevada | NV | BB | Positive | Stable | Healthy enrollment growth and improving financial metrics |
Monticello Academy | UT | BBB- | Negative | Stable | Continued softening of margins, weakened liquidity, and overall financial performance |
Noble Academy | MN | BB | Stable | Negative | Improving liqudity and financial performance, reduced total debt burden from sale of second facility |
Odyssey Preparatory Academy | AZ | BB- | Positive | Stable | Improved financial performance, consistent enrollment, high retention rates, and competitive academic results |
Parnassus Preparatory School | MN | BB | Positive | Stable | Improving financial metrics coupled with a steady demand profile |
Pinecrest Academy of Nevada | NV | BB+ | Stable | Negative | Positive enrollment trends in line with projections and healthy operating results |
Pointe Schools | AZ | B | Stable | Negative | Improving financial performance and liquidity position |
Prairie Seeds Academy | MN | BB- | Stable | Negative | Expected improvment in financial operations in fiscal 2021 and beyond |
Renaissance Public School Academy | MI | BB | Stable | Negative | Improving financial performance from better liquidity position, coupled with stabilizing demand profile |
Responsive Education Solutions | TX | BBB | Positive | Stable | Improved demand and financial profile during continued expansion |
Saginaw Preparatory Academy | MI | B | Stable | Negative | Improved market position based on improved charter standing and stabilizing enrollment and financial metrics |
South Bronx Charter School for International Cultures & the Arts | NY | BB+ | Negative | Stable | Material negative impact on school's debt burden and liquidity that would likely result from the school's expected debt issuance |
Spectrum High School | MN | BB+ | Stable | Negative | Expectation of financial stabilization |
TEAM Academy Charter School | NJ | BBB | Negative | Stable | Weakened pro forma coverage and balance-sheet metrics reflecting debt plans |
The Palmdale Aerospace Academy | CA | BB | Stable | Negative | Successful resolution of investigation by charter authorizer |
Twin Peaks Charter Academy | CO | BB | Negative | Stable | Weak financial performance and declining cash position |
West Philadelphia Achievement Charter Elementary School | PA | BB | CreditWatch Negative | Stable | Heightened uncertainty surrounding the school's charter contract |
Table 5
Charter Schools Ratings Maintained | |||
---|---|---|---|
Institution | State | Rating | Outlook |
21st Century Charter School | IN | B+ | Stable |
A+ Charter School Inc. | TX | BBB- | Stable |
Academia Cesar Chavez | MN | BB | Stable |
Acero Charter School Inc. | IL | BB+ | Stable |
Albert Einstein Academies | CA | BB | Stable |
Albuquerque School of Excellence | NM | BB | Stable |
Alliance for College-Ready Public Schools (Gertz-Ressler Merkin) | CA | BBB- | Stable |
Alliance for College-Ready Public Schools (Neuwirth) | CA | BBB- | Stable |
Alma del Mar Charter School | MA | BB | Stable |
American Charter Schools Foundation | AZ | BB+ | Stable |
American Leadership Academy | UT | BBB | Stable |
Arizona Autism Charter School | AZ | BB | Stable |
Arizona School for the Arts | AZ | BB+ | Stable |
Arlington Classics Academy | TX | BBB- | Stable |
ASPIRA of Delaware Charter Operations, Inc. | DE | BB | Negative |
Aspire Public Schools | CA | BBB | Negative |
Avon Grove Charter School | PA | BBB- | Stable |
BASIS Schools Inc. | AZ | BB | Stable |
Bay Haven Charter Academy, Inc. | FL | BBB | Stable |
Braination Inc. | TX | BBB- | Stable |
Brookside Charter School | MO | BB | Stable |
Campus Community School | DE | BBB- | Stable |
Carolina International School | NC | BB+ | Stable |
Cesar Chavez Academy | MI | BB+ | Stable |
Channing Hall Charter School | UT | BB | Stable |
Charter Sch for Applied Technologies | NY | BBB | Stable |
Charter School of Educational Excellence | NY | BB | Stable |
Chester Charter Scholars Academy Charter School | PA | BB+ | Stable |
Cheyenne Mountain Charter Academy | CO | BBB- | Negative |
Chicago Charter School Foundation | IL | BBB | Stable |
Choice Academies, Inc. | AZ | BB | Stable |
Cityscape Schools Inc. | TX | BBB- | Stable |
Classical Academy Charter School | CO | BBB | Stable |
Coastal Academy Charter School Inc. | CA | BBB- | Stable |
Collegium Charter School | PA | BB | Stable |
Cologne Academy | MN | BB+ | Stable |
Community of Peace Academy | MN | BBB- | Stable |
Compass Public Charter School | ID | BB | Stable |
Coral Academy of Science-Las Vegas | NV | BBB- | Stable |
Cornerstone Schools | FL | BBB- | Stable |
Crossroads Charter Academy | MI | BB- | Negative |
Dayspring Academy for Education and Arts | FL | BB | Stable |
Discovery Charter School | IN | BB- | Stable |
District of Columbia International School | DC | BBB | Stable |
Doral Academy of Nevada | NV | BB+ | Stable |
Dr. Joseph F. Pollack Academic Center of Excellence | MI | BB | Stable |
Duluth Edison Charter Schools (Tischer Creek Duluth Building Co.) | MN | BB+ | Stable |
Eagle Ridge Academy | MN | BB+ | Stable |
Early Light Academy | UT | BB | Stable |
Excel Academy Charter School | CO | BBB- | Stable |
Fenton Charter Public Schools | CA | BB+ | Stable |
First Philadelphia Preparatory Charter School | PA | BB+ | Stable |
First State Montessori | DE | BBB- | Stable |
Flagstaff Academy | CO | BBB | Negative |
Foundation Academy Charter School | NJ | BBB- | Stable |
Founders Academy of Las Vegas | NV | BB- | Stable |
Foxborough Regional Charter School | MA | BBB- | Stable |
Friends of Teaneck Community Charter School | NJ | BB | Stable |
Friendship Public Charter School Inc. | DC | BBB | Stable |
Global Concepts Charter School | NY | BBB+ | Stable |
Global Leadership Academy Charter School | PA | BB- | Stable |
Golden Rule Schools Inc. | TX | BBB- | Negative |
Grand Traverse Academy | MI | BB | Stable |
GreatHearts Arizona | AZ | BBB- | Stable |
Green Woods Charter School | PA | BB | Stable |
Hanley International Academy | MI | BB | Stable |
Harmony Public Schools | TX | BBB | Positive |
Hawthorn Academy | UT | BBB | Stable |
High School for Recording Arts | MN | B | Stable |
ICEF View Park Preparatory Accelerated Charter High School | CA | BB | Stable |
ICEF View Park Preparatory Accelerated Charter Middle and Elementary School | CA | BB | Stable |
Idaho Arts Charter School | ID | BBB- | Stable |
IDEA Public Schools | TX | A- | Stable |
Independence Academy | CO | BBB- | Stable |
Itineris Early College High School | UT | BB | Stable |
James Irwin Charter Schools | CO | BBB | Stable |
Julian Charter School | CA | B+ | Stable |
Kaleidoscope Charter School | MN | BB- | Stable |
Karl G. Maesner Preparatory School | UT | BBB- | Stable |
King Chavez Academies | CA | BB+ | Stable |
KIPP Bay Area Public Schools | CA | BBB | Stable |
KIPP DC | DC | BBB+ | Stable |
KIPP Nashville | TN | BBB- | Stable |
KIPP North Star Academy | MN | BB- | Stable |
KIPP Philadelphia Charter School | PA | BB+ | Stable |
KIPP SoCal Public Schools | CA | BBB | Stable |
KIPP Texas Inc. | TX | BBB+ | Stable |
Lake Norman Charter School | NC | BBB- | Stable |
Lakes International Language Academy | MN | BB+ | Stable |
Landmark Academy | MI | BB | Stable |
Latin American Montessori Bilingual Public Charter School | DC | BB+ | Stable |
Lawndale Educational and Regional Network Charter School (LEARN) | IL | BBB | Stable |
LEAP Academy University Charter School | NJ | BB- | Stable |
Lee County Charter Schools | FL | BB- | Stable |
Legacy Preparatory Academy | UT | BBB- | Stable |
Liberty Charter School | ID | BBB | Stable |
Life School of Dallas | TX | BBB- | Stable |
Lincoln Academy | UT | BBB- | Stable |
Lincoln Academy Charter School | CO | BBB- | Stable |
Literacy First Charter School | CA | BBB- | Stable |
Littleton Preparatory Charter School | CO | BB+ | Stable |
MaST Community Charter School | PA | BBB- | Stable |
Mater Academy, Inc. | FL | BBB | Stable |
Milwaukee Academy of Science | WI | BBB- | Stable |
Mountainville Academy | UT | BBB- | Stable |
New Branches Charter Academy | MI | BB- | Stable |
New Designs Charter School | CA | BB+ | Stable |
New Millennium Academy | MN | B | Stable |
Newark Charter School, Inc. | DE | BBB+ | Stable |
Noah Webster Basic Schools, Inc. | AZ | BB | Stable |
Noble Network of Charter Schools | IL | BBB | Stable |
North Star Academy | CO | BBB- | Stable |
Nova Academy | CA | BB | Stable |
Nova Classical Academy | MN | BB+ | Stable |
NYOS Charter School, Inc. | TX | BB | Stable |
Oakland International Academy | MI | BBB- | Stable |
Ogden Preparatory Academy | UT | BBB- | Stable |
Orenda Education | TX | BBB- | Stable |
PACT Charter School | MN | BBB- | Stable |
Palmetto Scholars Academy | SC | BB+ | Stable |
Peak to Peak Charter School - Prairie View Inc. | CO | BBB+ | Stable |
Pinnacle Charter School | CO | BBB- | Stable |
Platte River Academy Charter School | CO | BBB- | Stable |
Plymouth Educational Center Charter School | MI | D | NM |
Providence Hall | UT | BBB- | Stable |
Public Preparatory Charter Schools Academies | NY | BB+ | Stable |
Quest Academy | UT | BBB- | Stable |
Renaissance Academy Charter School | PA | BBB- | Stable |
Richfield Public School Academy | MI | BBB- | Stable |
River Charter Schools | CA | BB | Stable |
Riverhead Charter School | NY | BBB- | Stable |
Riverwalk Education Foundation Inc | TX | BBB- | Negative |
Rocklin Academy | CA | BB+ | Stable |
Ronald Wilson Reagan Academy | UT | BB | Stable |
Santa Rosa Academy Inc. | CA | BB+ | Stable |
Sarasota School of Arts & Sciences | FL | BBB- | Stable |
School Lane Charter School | PA | BBB- | Stable |
Sculptor Charter School | FL | BBB- | Stable |
Scuola Vita Nuova Charter School | MO | BB+ | Stable |
Ser-Ninos, Inc. | TX | BBB- | Stable |
SkyView Academy | CO | BB | Stable |
Somerset Academy of Las Vegas | NV | BB | Positive |
Southwest Preparatory School | TX | BB+ | Stable |
Springfield International Charter School (fka Sabis International Charter School) | MA | BBB- | Stable |
St Croix Preparatory Academy | MN | BB+ | Stable |
St. Paul Conservatory for Performing Artists | MN | BB | Stable |
Star International Academy | MI | BBB | Stable |
Summit Academy | UT | BBB- | Stable |
Summit Academy North | MI | BB | Stable |
Syracuse Arts Academy | UT | BBB- | Stable |
Tacony Academy Charter School | PA | BB+ | Stable |
Trinity Basin Preparatory | TX | BBB | Stable |
Universal Learning Academy | MI | BB+ | Stable |
University Laboratory School | CO | BBB- | Stable |
Uplift Education | TX | BBB- | Stable |
Urban Discovery Academy | CA | BB- | Stable |
Utah Charter Academies | UT | BBB- | Negative |
Value Schools | CA | BB+ | Stable |
Venture Academy | UT | BBB- | Stable |
Victory Charter School | ID | BBB- | Stable |
Villa Montessori Inc. | AZ | BBB- | Stable |
Village Tech Schools | TX | BB | Stable |
Wayside Schools | TX | BB | Stable |
Xavier Public Charter School | ID | BBB | Stable |
Yinghua Academy | MN | BB+ | Stable |
Related Research
- Outlook For Charter Schools: While Growing Demand And Stimulus Funds Provide Flexibility, Risks Persist, Jan. 11, 2022
- Outlook for U.S. States: Federal Funds Fuel Spending; Will Inflation Impede The Impact?, Jan. 4, 2022
- U.S. Charter Schools Rating Actions, Fourth-Quarter 2021, Jan. 13, 2022
- U.S. Economic Roundup: Tight Job Market Allows For More Fed Tightening, Jan. 10, 2022
- U.S. Real-Time Data: Economic Activity Slows As Omicron Takes Center Stage, Jan. 14, 2022
- ESG In U.S. Public Finance Credit Ratings: 2022 Outlook And 2021 Recap, Nov. 29, 2021
- Charter Schools Mid-Year Sector View: State Stability Supports School Stability, July 15, 2021
- U.S. Charter Schools Rating Actions, 2020, Jan. 28, 2021
This report does not constitute a rating action.
Primary Credit Analysts: | Jessica L Wood, Chicago + 1 (312) 233 7004; jessica.wood@spglobal.com |
Avani K Parikh, New York + 1 (212) 438 1133; avani.parikh@spglobal.com | |
Secondary Contact: | John Miceli, Dallas; john.miceli@spglobal.com |
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