S&P affirms Texas charter schools’ rating in wake of conservatorship
1 min readS&P Global Ratings affirmed its A-minus underlying rating and negative outlook for Texas-based IDEA Public Schools, while warning of potential governance risk associated with the state’s appointment of conservators that could lead to a downgrade.
Under a settlement agreement announced earlier this month with the Texas Education Agency (TEA),
IDEA has $1.112 billion of revenue bonds issued between 2010 and 2022 outstanding, with $908.4 million of the debt guaranteed by the triple-A-rated Texas Permanent School Fund, according to TEA data.
The charter school system also entered into an agreement with the U.S. Department of Education under which it will return $28.7 million in grant and formula funding.
S&P said the payment is spread out over three years and is expected to have limited impact on IDEA’s financial metrics “given its sizable operating base.”