Detroit Service Learning Academy Outlook Revised To Negative On Enrollment Declines And Negative Operations

CHICAGO (Standard&Poor's) Sept. 11, 2015--Standard&Poor's Rating Services revised its outlook to negative from stable and affirmed its rating of 'BB-' on Michigan Finance Authority's series 2011 public school academy limited obligation revenue and refunding bonds, issued on behalf of Detroit Service Learning Academy (DSLA). "The 'BB-' rating and negative outlook reflect our view of DSLA's recent enrollment declines, negative operations in fiscal 2014 with similar results anticipated for fiscal 2015, volatile liquidity levels and weakened maximum annual debt service coverage," said Standard&Poor's credit analyst Ashley Ramchandani. "The rating is currently constrained by academy's limited demand profile and by plans to develop a high school, which in our opinion poses a potential credit risk given

...CHICAGO (Standard & Poor's) Sept. 11, 2015--Standard & Poor's Rating Services revised its outlook to negative from stable and affirmed its rating of '##-' on Michigan Finance Authority's series 2011 public school academy limited obligation revenue and refunding bonds, issued on behalf of Detroit Service Learning Academy (DSLA). "The '##-' rating and negative outlook reflect our view of DSLA's recent enrollment declines, negative operations in fiscal 2014 with similar results anticipated for fiscal 2015, volatile liquidity levels and weakened maximum annual debt service coverage," said Standard & Poor's credit analyst Ashley Ramchandani. "The rating is currently constrained by academy's limited demand profile and by plans to develop a high school, which in our opinion poses a potential credit risk given the school's competitive environment," added Ms. Ramchandani. DLSA was initially chartered as the YMCA Service Learning Academy by LSSU in 1999. The academy is located in northwest Detroit...

Ratings Action