The Standard&Poor's underlying rating (SPUR) on Chester County Industrial Development Authority, Pa.'s revenue bonds, issued for the Collegium Charter School, has been lowered to 'B' from 'BBB-', reflecting a large drop in enrollment that has affected debt service coverage and resulted in additional draws on the school's already-thin financial position. Debt service coverage in fiscal 2005 (unaudited) was 0.34x; actual audited financial results in fiscal 2004 show a financial loss, compared with unaudited positive financial results provided by the school at the time of the initial rating. Additional credit concerns include: The overall deterioration of the financial position, caused primarily by enrollment levels that are falling short of initial projections due to high attrition rates. Additional financial challenges
