Standard&Poor's Ratings Services revised its outlook to negative from stable and affirmed its 'BB' long-term rating on the California Municipal Finance Authority's series 2012 charter school revenue bonds, issued for Santa Rosa Academy Inc. (SRA). The negative outlook reflects our expectation of potential additional debt within the next year or two to fund the construction of the gymnasium and baseball field. Final cost estimates or exact funding sources are not known at this time; however, per management, current estimates are approximately $7.5 million. The school's current maximum annual debt service (MADS) burden is already high at 29% of fiscal 2013 expenses, which could weaken with the issuance of additional debt. Mitigating these weaknesses, in our opinion, is the
