CHICAGO -- Standard & Poor's has moved Minnesota-based St. Croix Preparatory Academy's rating closer to investment grade level.
The academy won an upgrade to BB-plus, one notch into speculative territory, from BB on its 2008 and 2012 lease revenue bonds sold on its behalf by Baytown, Minn. The outlook is stable.
"The rating action reflects our view of SCPA's strengthened operations, resulting in maximum annual debt service coverage in line with 'BB-plus' rating medians," said analyst Ryan Quakenbush wrote in the report Nov. 9. "We expect SCPA to sustain the current levels of liquidity and MADS coverage and continue the growth seen the past few fiscal years."
The rating reflects strong academics and enrollment supported by consistent test scores above state levels and enrollment reaching 1,159 students as of fall 2015. That's up 18% since fall 2011.
The academy has about $26 million in total debt outstanding all of which is in a fixed-rate. The series 2008A and 2012 lease revenue bonds are secured by a mortgage on the academy's land, school building, and building contents in addition to all lease revenue.
