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

S&P Global Ratings placed its 'B+' 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), on CreditWatch with developing implications. The CreditWatch placement follows A.W. Brown's announcement that the school will surrender its charter to the state authorizer (Texas Educational Agency or TEA) and stop operating under its current organizational structure by June 2024; at the same time, A.W. Brown has entered an agreement with IDEA Public Schools (IDEA; A-/Negative) to purchase A.W. Brown's facilities and assume its real property assets and liabilities, including addressing the school's bond debt outstanding and long-term leases. The CreditWatch listing reflects our opinion that the rating on the bonds

...+ S&P Global Ratings placed its 'B+' 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), on CreditWatch with developing implications. + The CreditWatch placement follows A.W. Brown's announcement that the school will surrender its charter to the state authorizer (Texas Educational Agency or TEA) and stop operating under its current organizational structure by June 2024; at the same time, A.W. Brown has entered an agreement with IDEA Public Schools (IDEA; A-/Negative) to purchase A.W. Brown's facilities and assume its real property assets and liabilities, including addressing the school's bond debt outstanding and long-term leases. The CreditWatch listing reflects our opinion that the rating on the bonds could be raised or lowered, depending on how the transition moves forward and is finalized....

Summary