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HR Ratings Assigns HR BBB- (G) Rating to Arlington Higher Education Finance Corp. $31M Education Revenue Bonds (Trinity Basin Preparatory, Inc.), Series 2014A & $630,000 Taxable Education Revenue Bonds (Trinity Basin Preparatory, Inc.) Series 2014B

June 27, 2014

The Rating Perspective is Stable

MEXICO CITY--(BUSINESS WIRE)-- HR Ratings assigns an HR BBB- (G)1 rating to the Arlington Higher Education Finance Corporation Education Revenue Bonds (Trinity Basin Preparatory, Inc.), Series 2014A, and Taxable Education Revenue Bonds (Trinity Basin Preparatory, Inc.) Series 2014B.The Rating Perspective is Stable. The HR BBB- (G) rating reflects healthy pro forma debt service coverage ratio (DSCR) levels, and years of payment on the projected debt that declines to six years by fiscal 2019 (as compared to the series 2014 bonds that have a 35-year term). Also incorporated into the rating are Trinity Basin Preparatory, Inc.’s (TBP, or the academy) continued student demand, solid operating history, and good school system accountability performance ratings. The credit rating hinges on projected increased annual enrollment growth averaging 11% annually through the 2018 to 2019 school year, forecast increases in annual state per student funding at 2% annually, and a modest financial cushion in fiscal 2013 that is forecast to gradually improve over the next five years. HR Ratings believes TBP should be able to meet these targets based on the high number of students on the academy’s wait list and a gradual restoration of state funding to pre-fiscal 2012 levels.

Our complete press release and full rating report can be found:

http://web01.hrratings.com/pdf/0Trinity%20Basin%20Press%20Release.pdf

http://web01.hrratings.com/pdf/0Trinity%20Basin%20Preparatory%20Report.pdf

For our Regulatory Disclosure visit:

http://web01.hrratings.com/en/regulatory_disclosure

1 The ‘G’ indicates that the rating is based on a global scale. The rating is based on TBP’s credit risk.




HR Ratings

Fernando Montes de Oca, +5255155003130

Chief Operating Officer


Source: HR Ratings


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