...S&P Global Ratings assigned its '##' rating to Tipton Academy, Mich.'s series 2021 public school academy revenue bonds. The outlook is stable. Post issuance, Tipton will have about $6.1 million in total debt outstanding, consisting solely of the series 2021 revenue bonds. Proceeds of the series 2021 bonds will be used to acquire the academy's two facilities, which it currently leases. The acquisition is expected to result in material budgetary savings for Tipton, as maximum annual debt service (MADS) on the bonds is approximately $100,000 (or 20%) less than the total lease expense paid in recent fiscal years. The bonds are a general obligation (GO) of Tipton, and are secured by 20% of per pupil state aid and a first-mortgage lien on the land and facilities (including future improvements), financed with the issuance of the bonds, as well as by a fully funded debt service reserve. Bond covenants include a debt service coverage ratio of 1.1x if cash is less than 60 days and 1.0x if cash is...
