S&P Global Ratings lowered its underlying rating (SPUR) on Arizona Industrial Development Authority 's series 2020A and 2020B education revenue bonds, issued for Candeo Schools Inc. , one notch to ?BB+? from ?BBB-? The outlook is stable. The rating action reflects our opinion of the school?s weakening operating margins and lease-adjusted maximum annual debt service (MADS) coverage due to a trend of decreasing enrollment that resulted in significant budget cuts for fiscal years 2024 and 2025. As of June 30, 2024, Candeo had roughly $17.7 million of total debt outstanding, solely the series 2020 bonds, which it used to refund the series 2013 bonds, acquire its Peoria campus, and construct classrooms at its new Scottsdale campus. The school has no
