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U.S. Charter Schools Rating Actions, 2021

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U.S. Charter Schools Rating Actions, 2021

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

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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