Hawaii State Department Of Budget And Finance Mid-Pacific Institute; Independent Schools

S&P Global Ratings assigned its 'BBB+' long-term rating to the Hawaii State Department of Budget and Finance's approximately $9 million (par amount) series 2020 special purpose revenue bonds, issued for the Mid-Pacific Institute (Mid-Pacific, MPI, or the school). The outlook is stable. The rating reflects our opinion of the school's adequate market position, large and generally steady enrollment size exceeding 1,500 students despite a large application drop in fall 2019, consistently positive full-accrual operating performance supported by what we consider conservative management budgeting practices, and healthy debt-based financial resource ratios. This is countered by what we consider below-average cash and investments to adjusted operating expenses, limited operating revenue diversity, and a small endowment relative to rating category peers. The rating

...S&P Global Ratings assigned its '###+' long-term rating to the Hawaii State Department of Budget and Finance's approximately $9 million (par amount) series 2020 special purpose revenue bonds, issued for the Mid-Pacific Institute (Mid-Pacific, MPI, or the school). The outlook is stable. The rating reflects our opinion of the school's adequate market position, large and generally steady enrollment size exceeding 1,500 students despite a large application drop in fall 2019, consistently positive full-accrual operating performance supported by what we consider conservative management budgeting practices, and healthy debt-based financial resource ratios. This is countered by what we consider below-average cash and investments to adjusted operating expenses, limited operating revenue diversity, and a small endowment relative to rating category peers. The rating further reflects our view of the school's: + Sound full-accrual operating surpluses in recent fiscal years, with another surplus expected...

Full Report