S&P Global Ratingsslashed the debt ratings of a charter school operator in Detroit by six notches and warned of default, the latest sign of growing troubles for the sector.
The $19 million of bonds issued for Old Redford Academy in Detroit were downgraded to CC from B+ this week, after an announcement that the operator will shutter operations on June 30. Central Michigan University, the school’s authorizer, decided not to renew the Old Redford Academy’s charter contract.
Debt service payments were paid in full for June 1, but S&P said itexpects the school to default on Dec. 1 ...
