...S&P Global Ratings affirmed its '##+' long-term rating on the California Municipal Finance Authority's series 2012 and series 2015 charter school revenue bonds, issued for Santa Rosa Academy Inc. (SRA or the academy). The outlook is stable. We assessed the academy's enterprise profile as adequate, characterized by a long institutional tenure, stable enrollment, robust wait lists, and a stable management team. We assessed the academy's financial profile as vulnerable with a high debt burden at 17.1% of fiscal 2017 total revenues and over $20,000 debt per student (including homeschool students) compared with peers and the rating median, with an expectation these metrics are unlikely to improve in the near term due to modest enrollment growth projected by management. Somewhat tempering this weakness is the academy's demonstrated ability to maintain healthy full-accrual operating margins, solid liquidity, and satisfactory lease-adjusted maximum annual debt service (MADS) coverage (based on...
