CUSIP 788326AC0
- ISIN: US788326AC03
- Entity Name: City of St Cloud
- Sector: Municipal
- Announcement Date: 24-Sep-2018
- Effective Date: *****
- Issue Date: *****
- Maturity Date: 01-Apr-2036
- Country of Issuer: United States
- Region: N.Amer
- Issue Currency: United States of America Dollars
- CA Type: Rating Downgrade
- News: S&P Global Ratings lowered its long-term rating to `CC` from `CCC-` on St. Cloud, Minn.`s series 2016A lease revenue bonds, issued for STRIDE Academy (Stride, or the academy). The outlook is negative. The downgrade reflects the intent of the academy to miss its April 1, 2019, bond principal payment as permitted under the Conditional Waiver Agreement that the academy signed with the trustee. Management informs us that it does not plan to use the bond debt service reserve to cover the principal payment. The `CC` rating is in line our view that payment default is a virtual certainty. The negative outlook reflects our expectation that the April 1, 2019, bond principal payment will not be made as scheduled, constituting a default (`D` rating) under our criteria. The academy commenced operations in fall 2005. It served kindergarten through eighth grade (K-8) in one facility in St. Cloud, Minn. It had 705 students in fall 2016, and enrollment was down to 680 students at the end of the school year. About 300 students are enrolled in K-6 for fiscal 2018. We understand about 375 students are pre-enrolled for fall 2018 (fiscal 2019). The charter is authorized by Pillsbury United Communities for a three-year term through June 30, 2021. The $16.375 million outstanding series 2016A lease revenue bonds are secured by a pledge of lease payments made to the STRIDE Academy Building Co. by Stride Academy from state lease aid and net revenues. The building company was formed for the sole purpose of owning and leasing the facility to the academy, and reports its financials under a consolidated audit. A debt service reserve funded at maximum annual debt service and a mortgage lien on the facility also secure the bonds. For more information, please see our analysis published Feb. 8, 2018, on RatingsDirect
- Description: Municipal Name: City of St Cloud CUSIP: 788326AC0 Currency: USD City of St Cloud announced today that the Standard & Poor`s Rating has downgraded the long-term rating of the Series 2016A, Charter School Lease Revenue Bonds from CCC- to CC.
- Bond Document: https://www.bondpdf.com/
- Latest Corporate Actions: https://www.CAalerts.com/credit-corporate-action/ISIN/US788326AC03
