Standard & Poor's Ratings Services lowered its long-term rating to BBB-minus from BBB on Benton County Public Facilities Board, Ark.'s series 2010A tax-exempt lease revenue bonds issued for Benton County Charter School Organization Inc. on behalf of Arkansas Art Academy (formerly known as Benton County School of the Arts).
The outlook is stable.
"The rating action reflects our view of declines in demand at Arkansas Art Academy," said Standard & Poor's credit analyst Phillip Pena.
The school has faced declines in both enrollment and the wait list.
The stable outlook reflects the school's strong maximum annual debt service coverage, projected positive operating margins, improved technology and program offerings as a result of the Walton Family Foundation grant, and increased cash on hand.
