The 'BBB' rating on Colorado Educational and Cultural Facilities Authority's charter school revenue bonds, issued for Academy Charter School, reflects: A strong and positive environment for charter schools in Colorado, as demonstrated through a supportive legal framework and stable financial arrangements; A positive relationship between the school and its sponsor district, the Douglas County School District No. RE-1; A new, five-year charter, which extends through 2003; Positive financial performance and a covenant to maintain a minimum of $250,000 in working capital reserves; and Strong project essentiality, with minimal nonappropriation risk. A higher rating is precluded due to the school's demand characteristics and small size. The bonds are secured by charter school lease payments, subject to annual appropriation. The leased asset
