Standard & Poor's Ratings Services said it lowered its long-term rating to B-plus from BB-minus on Conner Creek Academy East (CCAE), Mich.'s series 2007 revenue and refunding bonds.
The outlook is negative.
"The rating action reflects our view of the inherent uncertainty associated with charter renewals given that the final maturity date of the bonds exceeds that of the charter," said Standard & Poor's credit analyst Phillip Pena. "Particular risks are CCAE's razor-thin covenant levels and consistent elementary and middle school academic woes," Pena added.
The negative outlook reflects CCAE's uncertainty in terms of cash, academic performance, and covenants.
