Standard & Poor's Ratings Services said it lowered its long-term rating to B-minus from BB-minus on the Indiana Finance Authority's series 2009A and 2009B educational facilities revenue bonds, issued for Irvington Community Schools Inc. (Irvington or ICS).
The outlook is negative.
"The lowered rating reflects our view of the school's weakening financial profile during the past year, including multiple covenant violations on its bonded debt and two consecutive years of failing to meet its authorizer's financial standards," said Standard & Poor's credit analyst Jessica Matsumori. "The negative outlook reflects the risk that the school's credit could weaken further in the next year to levels that are more consistent with a lower rating."
Irvington is located in Indianapolis, Ind., and is a midsize, multi-campus charter school that serves students in kindergarten through 12th grade.
Initially chartered in 2001, ICS began operations in fall 2002, with 115 students in kindergarten through sixth grade. ICS operates from three separate campuses, all of which are located within a 2-mile radius of each other.
