S&P Global Ratings revised its outlook to positive from stable on Advanced Technology Academy (ATA), Mich.'s series 2019 public school academy refunding bonds. At the same time, we affirmed our 'BB+' long-term rating on the school?s bonds. The positive outlook reflects our view of improved financial metrics, including solid full-accrual operating margins and lease-adjusted maximum annual debt service (MADS) coverage, improving days? cash on hand (DCOH), and a low debt burden, which if maintained alongside demand stability over the next one-to-two years, could translate to a credit profile reflective of a higher rating. As of June 30, 2024, ATA had about $9.9 million in long-term debt outstanding, consisting primarily of the series 2019 refunding bonds and a $200,000 capital lease.
