This report does not constitute a rating action. S&P Global Ratings? 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), is ?BBB+?. The outlook is stable. As of July 31, 2024, MPI had approximately $9.7 million in long-term debt outstanding, consisting of the series 2020 revenue bonds and about $486,000 in capital leases. We understand the leases are being renewed in fiscal 2026. 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
