Moody's Affirms Ba1 Rating on High Tech High School Facility Revenue Refunding Bonds

Strategic Insights -

The Ba1 rating reflects the stable enrollment trend at two schools in the obligated group, HTH Media Arts and HTH Chula Vista, which comprise approximately 16% of High Tech High's total enrollment. The schools have a history of sound financial management, with operating performance remaining stable due to solid liquidity and management. However, academic performance is mixed, with ELA scores favorable but math scores lagging behind the state and local district.

Key Takeaways:

  • The Ba1 rating on High Tech High's School Facility Revenue Refunding Bonds (HTH Learning Project) Series 2017A is affirmed by Moody's Investors Service, with a stable outlook.
  • The obligated group has $21 million in debt outstanding and consists of two schools, HTH Media Arts and HTH Chula Vista, which account for 16% of High Tech High's total enrollment.
  • The schools have a solid liquidity position, with nearly 200 days cash on hand, largely due to one-time emergency federal pandemic funding.
  • Academic performance is mixed, with ELA scores remaining favorable but math scores lagging behind the state and local district.
  • Student demand remains satisfactory, with a waitlist across the two schools.
  • The rating acknowledges the schools' long operating histories and multiple charter renewals as a charter management organization.
  • The stable outlook reflects the likelihood of continued stable operating performance driven by High Tech High's solid management.

Statistics:

  • $21 million: The amount of debt outstanding in the obligated group.
  • 16%: The percentage of High Tech High's total enrollment comprised by the two schools.
  • 200 days: The combined liquidity of the schools in cash on hand.
  • 1,025: The combined enrollment at the two obligated group schools for the 2024-25 school year.
  • 6,500: The number of students served by High Tech High's charter network.
  • $21 million: The amount of debt outstanding in the obligated group.

Sources:

  • Moody's Ratings (Moody's) - Ratings Rationale
  • Moody's Ratings (Moody's) - Rating Outcomes