Standard & Poor's Ratings Services said it raised its long-term rating to BBB-minus from BB-plus on the Danbury Higher Education Authority, Texas' education bonds issued for Golden Rule School Inc.
In addition, Standard & Poor's assigned its BBB-minus long-term rating to the corporation's series 2015A and 2015B education revenue refunding bonds; post issuance, the series 2008A and B bonds will be refunded by the series 2015A and B bonds. The outlook is stable.
"The BBB-minus rating reflects our opinion of Golden Rule's long-standing operations, growing enrollment, history of break-even to positive operations culminating in a small surplus for fiscal 2014, and solid liquidity with approximately 219 days' cash on hand," said Standard & Poor's credit analyst Ashley Ramchandani. "The rating further reflects our view of the school's indefinite capital spending plans, which could materially compress the school's cash position if implemented."
Following issuance, total pro forma debt will be approximately $7.6 million. Management anticipates using the proceeds of the series 2015 bonds to fully refund the series 2008A and 2008B bonds.
