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 (MADS) coverage, at 0.71x when considering the academy's approximately $6 million series 2014A and 2014B private placement debt. 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
