Standard & Poor's Ratings Services said it lowered its long-term rating to BB-plus from BBB-minus on Universal Academy, Mich.'s series 2013 public school academy revenue bonds.
The outlook is negative.
"The rating action reflects our view of the school's strained financial position resulting from its building expansion, along with anticipated deficits in fiscal years 2015 and 2016," said Standard & Poor's credit analyst Avani Parikh.
The negative outlook reflects the expectation the school will continue to have negative operating margins until at least fiscal 2016.
