Standard & Poor's Ratings Services said it lowered its long-term rating to BB-plus from BBB-minus on Hillsborough County Industrial Development Authority, Fla.'s series 2007A and 2007B tax-exempt and taxable revenue bonds, issued for Terrace Community Middle School (TCMS) and secured by a net revenue pledge of the school.
The outlook is stable.
"The downgrade reflects our view of the school's inadequate debt service coverage, deficit operating performance, and moderately weak liquidity," said Standard & Poor's credit analyst Carolyn McLean. "The school's strong demand, stable enrollment, and its consistently very strong academic performance coupled with successful charter renewals slightly offset these rating weaknesses."
TCMS first opened in 1998 in a strip mall with 160 students in grades five through seven; grade eight was added the next year under a three-year charter with the Hillsborough County School District. As of academic year 2012-2013, the school had 660 students in grades 6-8 and plans to remain at that level for the next few years.