...S&P Global Ratings lowered its long-term rating to 'B' from '##-' 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 outlook is stable. The downgrade is based on the academy's refinancing and liquidity risk with a short timeframe and limited market access from its unrated, privately placed subordinate series 2014A and 2014B bonds, which have a $6.3 million bullet maturity due in March 2019. The academy had attempted but failed to refinance this debt in 2016, leaving substantially less time to resolve the liquidity event risk. We understand that management anticipates refinancing the series 2014 out to 2021, then refinancing again in combination with the series 2011 on a parity basis for an additional five-to-10 year term. We assessed DSLA's enterprise profile as vulnerable, based on its slim waitlist and sharp decline in one historical year, though the past two...
