Standard & Poor's Ratings Services said it lowered its long-term rating to BB-plus from BBB-minus on Utah County, Utah's series 2007A charter school revenue bonds issued on behalf of Ronald Wilson Reagan Academy (RWRA).
Processing Content
The outlook is stable.
"The lower rating reflects our view of RWRA's consecutive years of operating deficits on a full-accrual basis, resulting in successive years of maximum annual debt service coverage of 1x, which is a level we consider very thin," said Standard & Poor's credit analyst Kenneth Gacka. "However, the stable outlook reflects the school's adequate cash levels and steady enrollment, which has been at full capacity over the last several years and provides some credit stability."
