Arlington Higher Education Finance Corp., Texas A.W. Brown Fellowship Charter School; Charter Schools

S&P Global Ratings assigned its 'AAA' enhanced program rating and 'BBB-' underlying rating for credit programs to Arlington Higher Education Finance Corp., Texas' approximately $3.7 million tax-exempt series 2017A education revenue refunding bonds and $6 million tax-exempt series 2017B education revenue bonds, issued for A.W. Brown Fellowship Leadership Academy (A.W. Brown). At the same time, we affirmed our 'AAA' enhanced program rating, 'BBB-' underlying rating for credit programs and 'BBB-' long-term rating on the series 2012 and series 2016 bonds of A.W. Brown. The outlook for all ratings is stable. The 'AAA' enhanced program rating reflects our expectation of A.W Brown's participation in the Texas Permanent School Fund (PSF) Bond Guarantee Program, which provides the security of a permanent fund

...some operational risk associated with the breadth of the changes and we'd like to see a longer track record of effective management by the new team. We assessed A.W. Brown's financial profile as strong, with positive operating performance, a net surplus expected for fiscal 2017, sufficient pro forma maximum annual debt service (MADS) coverage, and deep unrestricted liquidity position. We believe that, combined, these credit factors lead to an indicative stand-alone credit profile of '###-' and a final rating of '###-'. The ratings further reflect our view of A.W. Brown's:...

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