Bronx Charter School For Excellence, NY Debt Rating Outlook Revised To Stable From Negative On Improved Cash Position

Stocks and Financial Services Press Releases Wednesday November 15, 2017 08:57
NEW YORK--15 Nov--S&P Global Ratings

NEW YORK (S&P Global Ratings) Nov. 14, 2017--S&P Global Ratings revised the outlook on its 'BBB-' rating on Build NYC Resource Corp., N.Y.'s series 2013A tax-exempt revenue bonds and series 2013B taxable revenue bonds, issued for Bronx Charter School for Excellence (BCSE), to stable from negative and affirmed the rating.

The outlook revision reflects S&P Global Ratings' opinion of BCSE's improved cash, which the rating service believes is more in-line with the current rating. Furthermore, increased enrollment has led to improved financial performance and lease-adjusted maximum annual debt service (MADS) coverage that, in S&P Global Ratings' view, somewhat offsets financial pressure associated with the opening of new schools during the next couple of years.

The rating reflects S&P Global Ratings' group credit profile on BCSE (bbb-), and its view of BCSE's obligation to support the bonds is core to the organization.

"We could reassess the rating if the obligated group's status evolves due to BCSE's expansion. We could lower the rating if BCSE's plans for replication were to place pressure on the group's finances, causing cash and MADS coverage to decline to levels we no longer consider consistent with investment-grade medians," said S&P Global Ratings credit analyst Beatriz Peguero. "Our raising the rating or revising the outlook to positive is unlikely over the two-year outlook period due to the opening of new schools and startup costs associated with expansion. However, we could raise the rating if BCSE were to demonstrate MADS coverage more consistent with the higher-rating category while maintaining its enrollment and demand, impressive academic performance, and healthy liquidity."

The obligated school accounts for a majority of the assets, revenue, and enrollment of BCSE Education Corp. Due to BCSE's core status, the rating is equal to the rating on the group-credit profile. Due to expansion plans, the obligated group's core status could change; S&P Global Ratings will evaluate it as the organization evolves with the addition of new schools. The rating applies only to the bonds and not to BCSE Education Corp. as an organization.

S&P Global Ratings assessed BCSE's enterprise profile as adequate with solid demand and a robust waitlist, growing enrollment, and above-average academic performance tempered by significant expansion plans. S&P Global Ratings assessed BCSE's financial profile as adequate with respectable operating margins, healthy lease-adjusted MADS coverage, and improved cash. The rating service believes that combined, these credit factors led to an indicative stand-alone credit profile of 'bbb-' and a final rating of 'BBB-'.

The stable outlook reflects S&P Global Ratings' opinion that during the next two fiscal years, BCSE will likely maintain its steady financial profile by continuing to grow enrollment, generate positive revenue over expenses, and keep MADS and debt service coverage at current rating-category medians and that it will likely maintain stable cash. The rating service also expects that management will likely manage risks associated with the opening of BCSE No. 3 and BCSE No. 4 schools effectively and that the demand profile will likely continue to reflect its excellent academics, superb waitlist, and growing enrollment.

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at for further information. Complete ratings information is available to subscribers of RatingsDirect at All ratings affected by this rating action can be found on the S&P Global Ratings' public website at Use the Ratings search box located in the left column.

Latest Press Release

Photo Release: SCB and Sasin cooperate for SCB Future Leader Challenge (SCBFLC)

For the fifth year in a row Siam Commercial Bank (SCB) and the Sasin Graduate Institute of Business Administration of Chulalongkorn University have joined hands to organize the SCB Future Leader Challenge (SCBFLC) 2018. The program allows master's degree...

CPT to Pay Out Promised 100% of Net Profit in Dividends (THB 0.14/Share), Announces FY2017 Net Profit Surge Propelled by Across-the-Board Successes, Expects 10% Growth in FY2018 Driven by New Plant, Products

CPT decided to pay out 100% of its net profit, at THB 0.14 per share, to the shareholders after posting THB 140.71 m in net profit for FY2017, a 16.15% rise, thanks to excellent sales growth in the power distribution panel and servicing segments and a...

Agriculture Is Creating Higher Income Jobs in Half of EU Member States but Others Are Struggling

BRUSSELS, February 19, 2018 – Half of EU member states have leveraged the Common Agricultural Policy (CAP) to significantly reduce poverty and drive higher incomes in farming, while other countries are still lagging, according to the latest World...

Poland-Based Debt Purchaser GetBack S.A. Outlook Revised To #B/B# Ratings Affirmed

MOSCOW (S&P Global Ratings) Feb. 19, 2018--S&P Global Ratings said today that it has revised its outlook on Poland-based distressed-debt purchaser GetBack S.A. to positive from stable. At the same time, we affirmed our 'B' long-term and 'B'...

Trade/Project Financier, Bachmann Welser To Launch USD 2 billion Project Finance Fund

Global Trade/Project Financier, Bachmann & Welser will launch a USD 2 billion Project finance fund in March 2018 with funds that will be backed by several private and institutional investors. (Logo:...

Related Topics