S&P Global Ratings affirmed its 'BB' long-term rating on the Detroit Service Learning Academy's (DSLA) series 2021 public school academy refunding bonds. The outlook is positive. The positive outlook reflects our view of DSLA's growing enrollment of more than 1,600 students and increasing revenue (adjusted for one-time federal relief funds). Despite weakened cash and coverage in fiscal 2024 as a result of one-time expenses, we anticipate that fiscal 2025 operations could reflect positive operations similar to historical levels with growth in reserves. We could raise the rating if DSLA sustains its strengthened demand and financial metrics while executing its plans for a ninth-grade academy over the next year. Debt outstanding consists solely of $13.7 million series 2021 bonds issued in
