LOS ANGELES — Fitch Ratings deemed positive two recent developments in San Francisco Community College District's accreditation battle, but didn't change the district's BBB-plus rating or negative outlook, according to a report released Friday.
The first development came Jan. 14, when the district received restoration status of its accreditation, which removes the near-term threat of accreditation loss and provides the district with two additional years to come into full compliance with accreditation standards, according to Fitch. The status change came at the hands of the Western Association of Schools and Colleges' Accrediting Commission for Community and Junior Colleges.
A few days later, on Jan. 16, a San Francisco judge tentatively ruled that several aspects of the 2013 decision to terminate the district's accreditation violated state unfair competition law; and the accreditation commission would need to allow the district to respond to its concerns before reaffirming or rescinding its 2013 decision.
Fitch said it "views these recent developments as positive for the district, despite continuing uncertainty over how its accreditation challenges will play out." Fitch analysts said they expect to review the impact of these and other developments within the next several months.
The district will face a new review by the accrediting commission in January 2017, at which point it would need to demonstrate its full compliance with accreditation standards or face loss of accreditation again. The accrediting commission could also rescind its 2013 termination of the district's accreditation following a final ruling in the San Francisco case, although such a decision appears unlikely based on the ACCJC's actions to date, according to the Fitch report.
"In either scenario the near-term risks of accreditation loss are greatly reduced," Fitch analysts said in the report.
