S&P Global Ratings affirmed its 'BBB+' long-term rating on the 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). The outlook is stable. As of July 31, 2023, MPI had approximately $10.5 million in long-term debt outstanding, consisting of the series 2020 revenue bonds and about $1 million in capital leases. 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
