Moody's Assigns Aa3 Enhanced Rating to Stargate Charter School's Proposed Bonds

Strategic Insights -

Moody's Ratings has assigned an Aa3 enhanced rating to Stargate Charter School's proposed $21 million Charter School Revenue Bonds Series 2025A and $100,000 Charter School Revenue Bonds (Federally Taxable) Series 2025B bonds. The rating reflects Colorado's Treasury Department's determination that the bonds qualify for the state's Charter School Moral Obligation Program. The program provides debt service reserve replenishment or direct payment of debt service by the program, if necessary.

Key Takeaways:

  • The Aa3 enhanced rating is contingent upon the planned issuance through the Colorado Educational and Cultural Facilities Authority and participation in the Colorado Charter School Moral Obligation Program.
  • Stargate Charter School had pro forma total debt of approximately $59 million as of June 30, 2024.
  • The school reported $22 million in operating revenue and enrolled 1,572 students in grades K-12 in fiscal 2024.
  • The school is authorized by Adams 12 Five Star Schools and its current charter contract expires on June 30, 2029.
  • The Colorado Charter School Moral Obligation Program provides debt service reserve replenishment or direct payment of debt service by the program, if necessary.
  • The program is established by state statute and administered by the Colorado Educational and Cultural Facilities Authority.
  • Stargate Charter School opened in 1994 to serve gifted and talented students and is located in Thornton, Colorado, about 12 miles north of Denver.

Statistics:

  • Pro forma total debt: $59 million (as of June 30, 2024)
  • Operating revenue: $22 million (fiscal 2024)
  • Number of students: 1,572 (fiscal 2024)
  • Charter contract expiration: June 30, 2029
  • Charter school amendment: Stargate Charter School was authorized by Adams 12 Five Star Schools

Sources:

  • Moody's Ratings: Moody's Ratings Assigned Aa3 Enhanced Rating to Stargate Charter School's Proposed Bonds
  • Colorado Educational and Cultural Facilities Authority: Not mentioned
  • State of Colorado: Not mentioned
  • Adams 12 Five Star Schools: Not mentioned
  • Stargate Charter School: Not mentioned
  • Moody's Rating Action on the Colorado Charter School Moral Obligation Program: dated July 3, 2024
  • Moody's (2024): US States and Territories - July 2024, available at https://ratings.moodys.com/rmc-documents/425428.