...S&P Global Ratings' long-term rating on Hawaii State Department of Budget and Finance's series 2020 special purpose revenue bonds, issued for the Mid-Pacific Institute (Mid-Pacific, MPI, or the school) is '###+'. The outlook is stable. As of June 30, 2021, MPI had approximately $10.3 million in long-term debt outstanding consisting of the series 2020 revenue bonds and capital leases. We did not include a nominal amount of school operating leases in our debt calculations. Securing the bonds is a general obligation of the school. Bond covenants include at least 1.1x coverage of maximum annual debt service (MADS) by net revenues available for debt service, and at least a 1.5x MADS coverage additional bonds test. MPI's obligation to make payments pursuant to the loan agreement is absolute and collateral includes all tuition and fees, imposed on students by MPI. While pledged revenues are limited to tuition and fees and are narrower than a broader pledge of all revenues of MPI, we consider this...
