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Moody's Investors Service Inc.

Moody's Affirms Two Rivers Public Charter School's Baa3 Rating, Revises Outlook to Negative

Strategic Insights

— 1 min read

Moody's Investors Service has reaffirmed Two Rivers Public Charter School, Inc.'s Baa3 revenue bond rating, citing satisfactory enrollment and a competitive market profile. However, a negative outlook has been introduced, reflecting narrowing operating performance and potential revenue pressure in the District of Columbia. The school's total debt outstanding stands at approximately $40.8 million, with an operating profile marked by ongoing expense pressure and modest revenue growth prospects. Despite this, the school's financial flexibility remains robust, with 160 days cash on hand in fiscal 2024.

Key Takeaways:

  • Moody's has affirmed Two Rivers Public Charter School's Baa3 revenue bond rating, citing satisfactory enrollment and market profile.
  • The outlook has been revised to negative, reflecting narrowing operating performance and potential revenue pressure in the District of Columbia.
  • The school's total debt outstanding is approximately $40.8 million, with an operating profile marked by ongoing expense pressure.
  • Fiscal 2024 monthly days cash on hand stands at 160 days, enhancing the school's financial flexibility.
  • The school expects enrollment to rise to 1,039 students in fall 2025, and has no additional major capital or debt plans.
  • Favorably, the school's Days Cash on Hand (DCOH) is 160 days, indicating robust financial flexibility.
  • Ongoing expense pressure and potential revenue softness may reduced debt service coverage, which came in at 1.48x in fiscal 2024.

Statistics:

  • Two Rivers Public Charter School's total debt outstanding is approximately $40.8 million.
  • Fiscal 2024 total debt to operating revenue was 1.5x, indicating considerable financial leverage.
  • The school's revenue bond rating is Baa3, with a negative outlook.
  • Enrollment is expected to rise to 1,039 students in fall 2025.
  • Debt service coverage came in at 1.48x in fiscal 2024.
  • The school's facilities comprise two campuses in Northeastern Washington, DC.

Sources:

  • Moody's Ratings (Moody's)
  • Two Rivers Public Charter School, Inc.
  • US Charter Schools methodology published in April 2024
  • Rating Methodologies page on Moody's website

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