Summary: Arlington Higher Education Finance Corp., Texas A.W. Brown Leadership Academy; School State Program

S&P Global Ratings revised its outlook to negative from stable and affirmed its 'BB-' underlying rating on Arlington Higher Education Finance Corp., Texas' series 2016 and 2017 education revenue bonds, issued for A.W. Brown Leadership Academy (A.W. Brown). The outlook revision reflects that there is at least a one-in-three chance that we could lower the rating within our outlook horizon due to the school's weakened demand profile, with consecutive double-digit declines leading to consecutive full-accrual operating deficits and lease-adjusted maximum annual debt service (MADS) coverage below 1x with expectations for similar results in fiscal 2021. A.W. Brown's revenue as defined in the governing bond documents consisting primarily of per-pupil funding from the state secures the bonds. The academy used the

...S&P Global Ratings revised its outlook to negative from stable and affirmed its '##-' underlying rating on Arlington Higher Education Finance Corp., Texas' series 2016 and 2017 education revenue bonds, issued for A.W. Brown Leadership Academy (A.W. Brown). The outlook revision reflects that there is at least a one-in-three chance that we could lower the rating within our outlook horizon due to the school's weakened demand profile, with consecutive double-digit declines leading to consecutive full-accrual operating deficits and lease-adjusted maximum annual debt service (MADS) coverage below 1x with expectations for similar results in fiscal 2021. A.W. Brown's revenue as defined in the governing bond documents consisting primarily of per-pupil funding from the state secures the bonds. The academy used the proceeds of the proposed series 2017 bonds to refund the series 2011Q direct-pay qualified school construction bonds of A.W. Brown and to fund and reimburse various campus expansion/improvement...

Summary