Standard & Poor's Ratings Services said it lowered its long-term rating to AA-minus from AA on Taft School, Conn.'s existing bonds.
The outlook is stable.
It also assigned a AA-minus long-term rating to the Connecticut Health & Educational Facilities Authority's series J revenue bonds, issued on behalf of Taft School.
"The downgrade reflects the additional debt issuance and negative impact on the school's financial resource ratios, which are now more in line with those of AA-minus rated peers," said Standard & Poor's credit analyst Carolyn McLean.
The AA-minus rating is supported by the school's strong operating performance, which is viewed as particularly healthy given that endowment spending is below the target of 5% each year and a solid demand profile.
The series J bonds will have a par of $10.7 million, all of which is new-money debt. Post-issuance, total debt will be approximately $50 million. Bond proceeds will finance the renovation of two dormitories and several other renovation projects on campus.
The school is located on a 224-acre campus in Watertown, approximately 90 miles from New York City and 120 miles from Boston. The school enrolled 598 students in fall 2014, 81% of whom were boarding students.
