...S&P Global Ratings' long-term rating on Tipton Academy, Mich.'s series 2021 public school academy revenue bonds is '##'. The outlook is stable. The total long-term debt outstanding as of June 30, 2021, is $6.5 million, consisting solely of the series 2021 bonds. Proceeds of the series 2021 bonds were used to acquire the academy's two facilities (previously leased). 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 (DSC) ratio of 1.1x if cash is less than 60 days and 1.0x if cash is greater than 90 days, beginning in fiscal 2022. Falling below 1x DSC constitutes an event of default whereby bonds can be immediately accelerated. There are also academic performance covenants whereby the academy agrees to maintain its academic...
