LOS ANGELES - Standard & Poor's revised its outlook to negative from stable on Partnerships to Uplift Communities Project Schools, Calif.'s charter school revenue bonds. It affirmed its BB-plus rating on the bonds, series 2012A, tax-exempt, and series 2012B, taxable, which were issued through the California Municipal Finance Authority.

Operations from five of PUC's 13 schools secure the bonds.

"The negative outlook reflects the possibility that we could lower the rating due to a decline in lease-adjusted maximum annual debt service coverage in fiscal 2015 to levels not supported by the current rating due to the additional debt taken on by the organization," said S&P credit analyst Debra Boyd. "We could also lower the rating if financial performance weakens beyond current levels or if liquidity falls to levels not supported by the rating in fiscal 2015."

Boyd said S&P could return the outlook to stable if operations improve to levels needed to support lease adjusted maximum annual debt service coverage commensurate with the rating, if liquidity remains at current levels, and if the organization's enrollment remains steady.

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