Standard & Poor's Ratings Services said it lowered its long-term rating to BB from BB-plus on the Pima County Industrial Development Authority, Ariz.'s $17.9 million series 2014 education facility revenue bonds issued on behalf of multiple separate limited liability companies, of which the sole member of each is Edkey Inc.
The outlook is negative.
At the same time, it lowered its long-term rating to BB from BB-plus on the authority's $44.4 million series 2013 education facility revenue bonds, which are on parity with the series 2014 bonds and were also issued on behalf of multiple, separate LLCs, also with Edkey as the sole member of each.
"The lower rating reflects our view of Edkey's lower-than-projected enrollment, negative operating performance on full accrual basis for fiscal 2014, and deteriorating liquidity, which is more commensurate with a BB rating," said Standard & Poor's credit analyst Sharon Gigante.
