S&P Global Ratings affirmed its 'BB' long-term rating on Tipton Academy (Tipton), Mich.'s series 2021 public school academy revenue bonds. The outlook is stable. As of June 30, 2022, Tipton had $6.5 million in long-term debt outstanding, consisting primarily of the series 2021 bonds and a minimal remainder consisting of a capital lease. Proceeds of the series 2021 bonds were used to acquire the academy's two facilities (previously leased). The series 2021 bonds are a general obligation of Tipton and are secured by 20% of per-pupil state aid and a first-mortgage lien on the land and facilities, as well as by a fully funded debt service reserve. We assessed Tipton's enterprise profile as vulnerable, reflecting its small size and location
