Advanced Technology Academy, Michigan; Charter Schools

S&P Global Ratings affirmed its 'BB' rating on Advanced Technology Academy (ATA), Mich.'s series 2019 public school academy refunding bonds. The outlook is stable. As of June 30, 2020, ATA had about $11.2 million in total debt outstanding, consisting solely of the series 2019 refunding bonds. As with many other Michigan charters, ATA annually borrows short-term notes for cash flow purposes. ATA borrowed around $2 million in state aid notes, which had a carryover balance of about $360,000 as of fiscal year ending June 30, 2020 (based on draft audited financials). ATA does not anticipate borrowing larger amounts or increasing its reliance on state aid notes, which we view positively. The series 2019 bonds fully refunded the series 2008 bonds

...S&P Global Ratings affirmed its '##' rating on Advanced Technology Academy (ATA), Mich.'s series 2019 public school academy refunding bonds. The outlook is stable. As of June 30, 2020, ATA had about $11.2 million in total debt outstanding, consisting solely of the series 2019 refunding bonds. As with many other Michigan charters, ATA annually borrows short-term notes for cash flow purposes. ATA borrowed around $2 million in state aid notes, which had a carryover balance of about $360,000 as of fiscal year ending June 30, 2020 (based on draft audited financials). ATA does not anticipate borrowing larger amounts or increasing its reliance on state aid notes, which we view positively. The series 2019 bonds fully refunded the series 2008 bonds outstanding. The bonds are full faith and credit obligations of the academy, secured by 20% of state aid payments to the school, a mortgage on the facilities, and debt service reserve fund. Currently, ATA is offering remote learning for its 2020-2021...

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