The 'BBB-' rating on Chester County Industrial Development Authority, Pa.'s revenue bonds, issued for the Collegium Charter School project, reflects the inherent risk associated with the charter school, including the risk of non-renewal or revocation of the charter, along with the need for sustained demand for the facility. Additional credit concerns include The short operating history of the school, The potential for competition from new charter schools, and A small waitlist. Partially offsetting these concerns are: The school's rapid enrollment growth; A weak, but improving, financial position; Financial projections that indicate significant operating surpluses; Additional bond covenants regarding liquidity and coverage; Limited future capital plans; and The ability for the school to lose a significant number of students and still
