Detroit Service Learning Academy, Michigan; Charter Schools

S&P Global Ratings raised its long-term rating to on Michigan Finance Authority's series 2011 public school academy limited obligation revenue and refunding bonds, issued for Detroit Service Learning Academy (DSLA) 'BB-' from 'B'. At the same time, we removed the rating from CreditWatch with developing implications. We also assigned our 'BB-' long-term rating to DSLA's series 2021 public school academy refunding bonds. The outlook on all ratings is stable. The CreditWatch resolution reflects our view of DSLA's plans to refinance all of its existing debt in July of 2021, which would sufficiently address our view of the refinancing and cross default risks associated with the $6.075 million bullet maturity on its series 2014 privately placed bonds (unrated) coming due on

...S&P Global Ratings raised its long-term rating to on Michigan Finance Authority's series 2011 public school academy limited obligation revenue and refunding bonds, issued for Detroit Service Learning Academy (DSLA) '##-' from 'B'. At the same time, we removed the rating from CreditWatch with developing implications. We also assigned our '##-' long-term rating to DSLA's series 2021 public school academy refunding bonds. The outlook on all ratings is stable. The CreditWatch resolution reflects our view of DSLA's plans to refinance all of its existing debt in July of 2021, which would sufficiently address our view of the refinancing and cross default risks associated with the $6.075 million bullet maturity on its series 2014 privately placed bonds (unrated) coming due on Sept. 1, 2021. Additionally, DSLA has obtained a signed term sheet from the current holder on the unrated bonds to extend its current maturity out to Sept. 1, 2023, in the event that the school is unsuccessful in closing on...

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