Bloomberg Information
S&P International Rankings positioned the issuer credit score and income bond rankings for Flagler Faculty, Florida, on CreditWatch Destructive Friday and stated it might withdraw the BBB-plus rankings inside 90 days.
S&P stated the CreditWatch mirrored the school’s lack of well timed and ample info to take care of the ranking.
The latest audited complete monetary report accessible is for fiscal 2023, which ended June 30, 2023.
The varsity
“The school has just lately carried out a brand new ERP (Enterprise Useful resource Planning) and HCM (Human Capital Administration) system, efficient for the June 30, 2024 fiscal 12 months, which has induced sudden delays within the normal ledger information conversion and completion of the annual audit,” the varsity stated.
“Flagler Faculty will file its audit and different required monetary/working information as quickly as it’s accessible, which it moderately expects to be on or earlier than … March 31, 2025.”
S&P stated its motion impacts sequence 2016 and sequence 2017 income bonds issued for Flagler by the Florida Greater Academic Amenities Financing Authority.
The fiscal 2023 ACFR indicated the varsity had $55 million in long-term debt excellent and $74.9 million in whole liabilities.
S&P downgraded Flagler’s bond ranking to BBB-plus from A-minus in January 2024. The ranking then and now has a steady outlook.
For the downgrade, S&P cited a “vital drawdown on the school’s money and investments for capital initiatives,” substantial improve within the school’s debt load, and “steady enrollment declines through the previous few years.”
Full-time equal enrollment in 2024 had declined 15.7% since 2020. That is partly as a consequence of phasing out of the varsity’s Tallahassee campus. Flagler reported an enrollment of about 2,600 in its most up-to-date ACFR.
The varsity’s working outcomes have been “traditionally variable,” S&P stated in 2024.
In fiscal 2022 the varsity obtained 81% of its whole income from gross tuition and charges.
One of many faculty’s most important scholar residences at its St. Augustine campus flooded in July 2022 and largely to make the beginning of repairs, the varsity drew down its money and investments to $85.2 million in fiscal 2023 from $112.7 million in fiscal 2022, S&P reported. The varsity deliberate to make further renovations to the residence by way of fiscal 2025.
The Bond Purchaser tried to contact Flagler Faculty however the faculty’s most important receptionist stated the pc listing of numbers was quickly down and he or she could not provide a quantity for somebody to remark.
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