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U.S. Charter Schools Rating Actions, 2024

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U.S. Charter Schools Rating Actions, 2024

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In 2024, S&P Global Ratings downgraded twice (14) the number of ratings than that were raised (seven) across our rated universe of U.S. charter schools. Similarly, the number of charter school issuers that had an unfavorable outlook revision (19) outpaced the number of positive outlook revisions (14) that occurred across our rated universe.

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Chart 1

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Table 1

2024 U.S. charter schools initially assigned new ratings
Institution State Rating Outlook
Athenian eAcademy UT BB Stable
Ascend Public Charter Schools NY BB+ Stable
Ascent Classical Academy Charter Schools CO BB Stable
Champion Schools Inc. AZ BB Stable
Conservatory Lab Charter School Foundation MA BB Stable
Cornerstone Charter Academy NC BBB- Stable
Durham Charter School NC BB- Stable
Ednovate Schools CA BB+ Stable
Envision Education Inc. CA BB+ Stable
Etoile Academy Charter School TX BB Stable
Integrity Charter School CA BB- Stable
Kenilworth Science & Technology Charter School LA BB Stable
Lake Charles Charter Academy Foundation LA BB+ Stable
Mason Classical Academy FL BB Stable
Navigator Academy Of Leadership Inc. FL BB Stable
Real Journey Academies Inc. CA BB+ Stable
Rhode Island Nurses Institute Middle College Charter High School RI BB Stable
Success Academy Charter School NY A- Stable
The Community Charter School Of Paterson NJ BB+ Stable
Yu Ying Public Charter School DC BB Stable
Zeta Charter Schools NY BB+ Stable

Table 2

2024 U.S. charter school ratings raised
Institution State Rating to Rating from Outlook to Outlook from Description
Amplus Academy NV BB+ BB Stable Positive Enrollment increases and improving financial metrics following succesful K-5 expansion.
Chester Charter Scholars Academy PA BBB- BB+ Stable Positive Continued trend of healthier operating margins and stronger lease-adjusted MADS coverage.
Hanley International Academy MI BB+ BB Stable Positive Healthier margins and improved debt service coverage metrics following series 2021 refinancing.
Legacy Traditional School AZ BBB- BB+ Stable Positive Steady enrollment base resulting in improved financial performance and growing liquidity position.
Paterson Charter School for Science & Technology NJ BB+ BB Stable Positive Consistent trend of enrollment growth through expansion to additional school sites and improving financial operations.
Quest Academy UT BBB BBB- Stable Positive Continued trend of healthier operating margins and stronger lease-adjusted MADS coverage.
Saginaw Preparatory Academy MI BB- B+ Stable Stable Consistent enrollment growth and stability in the new management team resulting in improved operating results.
Footnotes:
MADS--Maximum annual debt service. DCOH--Days' cash on hand.

Table 3

2024 U.S. charter school ratings lowered
Institution State Rating to Rating from Outlook to Outlook from Description
Albany Leadership Charter High School For Girls NY B+ BB Negative Stable Lower-than-expected enrollment growth after middle school expansion, leading to operating deficits in fiscal 2022 that are expected to continue through fiscal 2024.
Duluth Edison Charter School MN BB BB+ Negative Stable Persistent enrollment declines, which pressured financial performance leading to DSC violation in fiscal 2023.
East Harlem Tutorial Program NY BB BB+ Stable Stable Weakened financial profile following a full-accrual operating deficit and MADS coverage of less than 1x in fiscal 2023.
Edkey, Inc. AZ D BB+ NM CW Negative Sharp enrollment declines and recent action by majority bondholders, after an informal agreement with Edkey management, to direct the bond trustee to refrain from making its scheduled Dec. 1, 2024, interest payment on the outstanding parity debt.
Evolution Academy Charter School TX B B+ Negative Stable Trend of weak operating performance, leading to fiscal 2023 MADS coverage below 1.0x, and a precipitous decline in liquidity projected in fiscal 2024.
Foundation Academy Charter School NJ BB+ BBB- Stable Stable Increased debt burden and worsening financial metrics following the issuance of series 2024 debt.
Jacquelyn Y. Kelley Discovery Charter School PA BB BB+ Stable Stable Weakened liquidity profile and limited growth potential due to their modest operating base.
Math & Science Academy MN BB+ BBB- Negative Negative Confirmed plans to issue additional debt coulpled with deficit operations and declining liquidity levels.
Memphis Rise Academy TN BB+ BBB- Negative Stable Declining liquidity and weak operating performance, resulting in a financial ratio covenant violation.
Noah Webster Basic School AZ BB- BB Negative Negative Continuing trend of material enrollment declines and a weakening liquidity position.
PACT Charter School MN BB BB+ Negative Negative Declining liquidity position, which could pressure financial metrics in the wake of an increased debt burden from the school's recent expansion and growing expense base.
Public Preparatory Charter Schools Academies NY BB BBB Negative CW Negative Significant and unexpected increase in pro forma lease-adjusted debt in fiscal 2023, translating to pro forma MADS coverage below 1x, along with the network's significant enrollment declines in recent years, leading to the consolidation of schools.
St. Paul Conservatory for Performing Arts MN B+ BB- Negative Negative Declining enrollment leading to a smaller operating base, leaving the school's finances more suspectible to unexpected enrollment fluctuations.
Urban Discovery Academy CA B+ BB- Negative Negative Signficant enrollment declines leading to materially weaker liquidity position and expectations for a full-accrual operating deficit in fiscal 2024.
MADS--Maximum annual debt service. DCOH--Days' cash on hand. DSC--Debt service coverage.

These actions reflect a sector that remains stable due to increasing demand (21 new ratings were assigned in 2024) and steady-to-growing per-pupil funding for kindergarten-through-grade 12 (K-12) education, but has begun to experience operational challenges, as evidenced by the 14 ratings that were downgraded relative to just seven upgrades. As discussed in "U.S. Charter Schools 2025 Outlook: Stability For Now, With Pockets of Pressure" (published Jan. 22, 2025, on RatingsDirect), demand remains solid, with charter school enrollment increasing compared with that of traditional public schools over the last five years. However, charter schools are not immune to the wage pressures and labor shortages seen across the U.S., and emergency federal stimulus funds, which helped mitigate these pressures for charter schools in recent years, have been exhausted. We will be monitoring impending budgetary challenges as well as how a new federal administration with different priorities could create new opportunities or challenges across the sector.

Table 4

2024 U.S. Charter School Outlook Revisions
Institution State Rating Outlook to Outlook from Description
21st Century Charter School Of Gary IN B+ CW Positive CW Developing Resolution of the series 2013 bond covenants, including an added payment guarantee from GEO Foundation, the schools charter management organization
A.W. Brown Leadership Academy TX B+ CW Negative Negative Announcement that the school will surrender its charter to the state authorizer and stop operating under its current organization structure.
Academic Leadership Charter School NY BBB- Negative Stable Weakening demand profile in highly competetive market for students and expecations of more modest financial performance in the near-term
Academy of Accelerated Learning TX BBB- Negative Stable Negative enrollment trends leading to a deterioration of operating results and liquidity metrics.
Achievement First Rhode Island RI BB+ Stable Negative Strengthening demand profile leading to improved financial metrics and healthier MADS coverage
American Heritage Charter Schools CA BBB- Stable Negative Improved financial operations and successfully obtaining charter renewals for full funding.
Arizona Autism Charter Schools AZ BB Stable Positive Weakened pro forma financial metrics due to additional debt issuance.
Austin Achieve Public Schools TX BBB- Negative Stable Weakening financial metrics with expectations of continued operating pressures in fiscal 2024 and fiscal 2025 as a result of flat state funding.
Avon Grove Charter School PA BBB- Negative Stable Weaker credit profile that is anticiapted given new debt plans that would triple the school's total debt outstanding.
Basis Schools, Inc. AZ BB Positive Stable Consistently strong academic and demand metrics, improving operating performance and a reduction in negative unrestricted net assets.
Berean Academy AZ BB Negative Stable Four years of consecutive enrollment declines leading to uncertainty surrounding future operating performance
Channing Hall Charter School UT BB Positive Stable Improvements in the school financial profile led by a growing liquidity position and a moderating debt burden.
Community Leadership Academy CO BB+ Negative Stable Weakened financial profile following negative operating margins and MADS coverage of less than 1.0x in fiscal 2023 that are also projected for fiscal 2024.
District of Columbia International School DC BBB Positive Stable Strengthening financial profile as a result of enrollment growth and one-time funding
Dr. Joseph F. Pollack Academic Center Of Excellence (PACE) MI BB Negative Stable Enrollment declines that weakened financial performance and MADS coverage in fiscal 2023.
Excel Academy Charter School CO BBB- Negative Stable Consecutive years of enrollment declines in a competetive service area for students amid recent management turnover.
Global Leadership Academy Charter School PA BB- CW Negative Stable Trend of deficit operations resulting in dcoh and dsc covenant violations leading to short-term uncertainty regarding bondholder actions.
Global Leadership Academy Charter School PA BB- Negative CW Negative Trend of deficit operations and slim liquidy position leading to covenant violations in fiscal 2023.
Great Oaks Legacy Charter School NJ BB+ Stable Positive Modest financial performance and liquidity metics, coupled with anticipated debt plans for high school expansion.
Hmong American Peace Academy WI BBB Positive Stable Strengthened financial profile supported by trend of solid operating margins, MADS coverage and a robust liquidity position.
Hope Community Academy MN B- Stable Negative Fiscal improvements such that the school was in compliance with covenants in fiscal 2024, with expectations that compliance will continue in fiscal 2025.
KIPP Nashville TN BBB Positive Stable Steady enrollment growth and sustained healthy financial performance supporting stronger liquidity position
KIPP North Star Academy MN BB- Negative Stable Declining enrollment base that continues to shrink reflecting the school's weak market position.
KIPP Philadelphia Charter School PA BB+ Negative Stable Weakened liquidity and financial performance in fiscal 2023.
LEAP Academy University Charter School NJ BB- Positive Stable Improved liquidity and lease-adjusted MADS coverage, while sustaining a healthy enterprise profile amid challenging demographics
Little Scholars Of Arkansas Foundation AR BB+ Negative Stable Weakened fiscal 2023 operating performance leading to lower MADS coverage and unrestricted reserves
Mater Academy Of Nevada, Inc. NV BB- Stable Positive Weakened liquidity position and uneven fiscal performance in recent years, despite fiscal 2023 negative operating margins being attributable to timing issues with grants.
Monticello Academy UT BB+ Negative Stable Weakened liquidity metrics and operating performance in fiscal 2023 resulting in a DSC covenant violation
Noble Academy MN BB Positive Stable Robust cash position along with a trend of solid operations following recent school consolidation.
North Star Academy Charter School Of Newark NJ BBB- Positive Stable Enrollment growth resulting in operational stability, improved liquidity and a moderating debt profile.
Odyssey Academy Inc. TX BB Negative Stable Financial pressures leading to expected liquidity covenant violation in fiscal 2024.
Old Redford Academy MI BB- Negative Stable Continued enrollment declines creating near term budgetary pressures.
Penn Hills Charter School of Entrepreneurship PA BB Negative Stable Deteriorating full-accrual operating results and moderating liquidity postion
Pinecrest Academy Of Nevada NV BB+ Positive Stable Robust enrollment base following steady enrollment growth and moderating debt service burden
Public Preparatory Charter Schools Academies* NY BBB CWNegative Stable Uncertainty surrounding the network's planned school consolidation beginning in the Fall 2024
ResponsiveEd TX BBB Stable Positive Softer operating results and lower MADS coverage in fiscal 2023
Rocklin Academies CA BB+ Positive Stable Strengthened financial profile supported by solid operating performance and improved liquidty ratios.
Scuola Vita Nuova Charter School MO BB+ Stable Positive Enrollment declines that will likely translate to more modest financial performance in the near term.
Tipton Academy MI BB Positive Stable Improving margins, lease-adjusted MADS coverage and strengthening liquidity position
Twin Cities German Immersion School MN BB Stable Negative Financial improvements such that the school was in compliance with debt service covenants in fiscal 2024, with expectations that compliance will continue in fiscal 2025.
Universal Academy TX BB- Stable Negative Improved operating margins and favorable changes to management's growth strategy.
Valor Collegiate Academies TN BBB- Positive Stable Improvements in financial performance, growing liquidity and moderating debt combined with maintaining a strong enterprise profile.
Victory Charter School ID BBB- Stable Positive Increased debt burden following issuaning new debt and expectations of more modest MADS coverage in the near term.
Vista College Preparatory AZ BB+ Positive Stable Successful opening of two additional schools in fall 2023 and improved financial metrics.
Footnotes:
MADS: Maximum annual debt service.
DCOH: Days' cash on hand.
DSC--Debt service coverage.

Table 5

2024 U.S. Charter Schools Total Maintained Ratings
Institution State Rating Outlook
A+ Charter School Inc. TX BBB- Stable
Academia Cesar Chavez MN BB Stable
Academies of Math and Science AZ BB+ Stable
Acero Charter School IL BB+ Stable
Advanced Technology Academy MI BB+ Stable
Albert Einstein Academies CA BB Stable
Alliance for College-Ready Public Schools CA BBB Stable
Alma del Mar Charter School MA BB Stable
Athenian eAcademy UT BB Stable
Avondale Meadows Academy IN BB Stable
Ball Charter Schools AZ BBB- Stable
Beatrice Mayes Institute TX BBB- Stable
Ben Franklin Academy CO BBB- Stable
Brighter Choice Charter School NY BB+ Stable
Caliber Public Schools CA BBB- Stable
Campus Community School DE BBB- Stable
Castle Rock Lifelong Learning Center CO BBB Stable
Chandler Park Academy MI BBB- Negative
Cheyenne Mountain Charter Academy CO BBB- Stable
Chicago Charter School Foundation IL BBB Stable
Choices in Learning Elementary Charter School FL BBB- Stable
Cityscape Schools Inc TX BBB- Stable
Classical Charter Schools NY BBB- Stable
Collegium Charter School PA BB Stable
Community Of Peace Academy MN BBB- Stable
Compass Academy Charter School TX BBB- Stable
Cornerstone Charter Academy NC BBB- Stable
Cornerstone Schools FL BB+ Stable
DaVinci Academy of Science UT BBB- Stable
Dayspring Academy For Education And Arts FL BB Stable
Discovery Charter School IN BB- Stable
Doral Academy Charter School FL BBB- Positive
Dream Charter School NY BB+ Stable
Eleanor Kolitz Hebrew Language Academy TX BBB- Stable
Environmental Charter Schools CA BB+ Stable
Equitas Academy Charter School CA BB+ Stable
First Philadelphia Preparatory Charter School PA BB+ Stable
First State Montessori Academy DE BBB- Stable
Foundation Academy Charter School NJ BBB- Stable
Freire Charter School Wilmington DE BB Stable
Friends of Teaneck Community Charter School NJ BB Stable
Friendship Public Charter School, Inc. DC BBB Stable
George Washington Academy UT BBB- Stable
Global Academy Inc. MN BB Stable
Global Concepts Charter School NY BBB+ Stable
Golden Rule Charter School TX BB+ Stable
Granada Hills Charter School CA BBB Stable
Grand Concourse Academy Charter School NY BBB- Stable
GreatHearts Arizona AZ BBB Stable
Green Dot Public Schools CA BBB- Stable
Green Woods Charter School PA BB+ Stable
Harmony Public Schools TX BBB+ Stable
Hawking STEAM Charter School CA BB+ Stable
Hawthorn Academy UT BBB Stable
Hennepin Schools MN BB- Stable
Holly Academy MI BB+ Stable
Horizon Community Learning Center AZ BB+ Stable
Horizon Montessori Public Schools TX BBB- Stable
Hughen Center Inc d/b/a Bob Hope Charter School TX BBB- Stable
Idaho Arts Charter School ID BBB- Stable
IDEA Public Schools TX A- Negative
IDEA Public Schools TX A- Negative
Independence Academy CO BBB- Stable
ICEF Public Schools CA BB Negative
Inspired Teaching Demonstration Public Charter School DC BBB Stable
International Academy of Flint MI BB Stable
James Irwin Charter Schools CO BBB Stable
John Adams Academy CA BB Stable
Jubilee Academic Center TX BB+ Stable
Jubilee Academic Center Inc. TX BB+ Stable
Julian Charter School CA B+ Stable
Karl G. Maeser Preparatory Academy UT BBB- Stable
KIPP Capital Region NY BBB- Stable
KIPP DC DC BBB+ Stable
KIPP NYC NY BBB- Stable
KIPP Texas TX BBB+ Stable
Lake Norman Charter School NC BBB- Stable
Lake Norman Charter School NC BBB- Stable
Lakes International Language Academy MN BB+ Stable
Las Americas ASPIRA Academy DE BB Stable
Latin American Montessori Bilingual Public Charter School DC BB+ Stable
Lee County Charter Schools FL BB Stable
Legacy Preparatory Academy UT BBB- Stable
Liberty Charter School ID BBB+ Stable
Liberty Common Charter School CO BBB- Stable
Life School of Dallas TX BBB- Stable
Lifeline Education Charter School CA BB+ Stable
Lincoln Academy UT BBB- Stable
Littleton Preparatory Charter School CO BBB- Stable
Magnolia Science Academy 1 CA BB Stable
Mater Academy Of Nevada NV BB Stable
Michigan Math & Science Academy MI BB+ Stable
Milwaukee Academy of Science WI BBB- Stable
Monument Academy CO BB Negative
Mountain Island Charter School NC BBB- Stable
Mountainville Academy UT BBB- Stable
New Designs Charter School CA BB+ Stable
New Vision Charter School CO BBB- Stable
Newark Charter School DE BBB+ Stable
Noah Webster Academy UT BBB- Stable
Noble Network of Charter Schools IL BBB Stable
North Star Academy UT BBB- Stable
North Star Academy CO BBB- Stable
North Star Academy of Newark NJ BBB- Stable
Nova Academy CA BB Stable
Odyssey Charter School DE BBB- Stable
Orenda Education TX BBB- Stable
Palm Beach School For Autism FL BB+ Stable
Palmetto Scholars Academy SC BB Negative
Paradise Schools AZ BB+ Stable
Paramount School Of Excellence IN BB+ Stable
Paterson Arts And Science Charter School NJ BBB- Stable
Peak To Peak Charter School CO BBB+ Stable
Philadelphia Electrical And Technology Charter High School PA BB Stable
Pine Lake Preparatory NC BBB- Stable
Pinecrest Academy, Inc. FL BBB Stable
Pinnacle Charter School CO BBB- Stable
Platte River Academy Charter School CO BBB- Stable
Renaissance Academy Charter School PA BBB- Stable
Renaissance Academy Charter School PA BBB- Stable
Renaissance Arts Academy CA BBB- Stable
Renaissance Public School Academy MI BB+ Stable
Riverhead Charter School NY BBB- Stable
Rocklin Academies CA BB+ Stable
Ronald Wilson Reagan Academy UT BB Stable
Sage International School of Boise ID BB+ Stable
Sarasota School of Arts & Sciences FL BBB- Stable
Ser-Ninos, Inc. TX BBB- Stable
Seton Education Partners o/b/o Brilla Public Preparatory Charter Schools NY BB+ Stable
Somerset Academy of Las Vegas NV BB Stable
Spectrum High School MN BB+ Stable
Springfield International Charter School MA BBB- Stable
St Croix Preparatory Academy MN BB+ Stable
STEM Preparatory Schools CA BBB- Stable
Syracuse Arts Academy UT BBB- Stable
Tapestry Charter School NY BB+ Stable
Texas Leadership Charter Academy TX BB Positive
The Elevate Academy, Inc. ID BB Stable
The Higher Ground Academy MN BB+ Stable
The Learning Choice Academy CA BBB- Stable
Triad Math and Science Academy NC BBB- Stable
Trillium Academy MI BB Stable
Twin Peaks Charter Academy CO BB Stable
University Laboratory School CO BBB- Stable
Uplift Education Inc. TX BBB- Stable
Value Schools CA BBB- Stable
Venture Academy UT BBB- Stable
Villa Montessori, Inc. AZ BBB- Stable
Voyageur Academy MI B+ Stable
Wallace Stegner Academy UT BB+ Stable
Wasatch Peak Academy UT BBB- Stable
West Philadelphia Achievement Charter Elementary School PA BB- Negative
Western Academy Charter School FL BB Stable
Woodbury Leadership Academy MN BB- Stable
Xavier Public Charter School ID BBB Stable
Footnotes:

Related Research

This report does not constitute a rating action.

Primary Credit Analyst:Ryan Miller, Dallas +1 2148711408;
ryan.miller@spglobal.com
Secondary Contacts:Jessica L Wood, Chicago + 1 (312) 233 7004;
jessica.wood@spglobal.com
Luke J Gildner, Columbia + 1 (303) 721 4124;
luke.gildner@spglobal.com

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