Showing posts with label Problems with bonds. Show all posts
Showing posts with label Problems with bonds. Show all posts

Fitch Ratings 'Charter School Rating Criteria: Exposure Draft' & anticipated negative effect

“TEXT-Fitch updates Charter School rating criteria.” Reuters, 9/19/2012

Sept 19 - Fitch Ratings has updated its Charter School Rating Criteria, incorporating the proposals detailed in 'Charter School Rating Criteria: Exposure Draft' dated July 19, 2012, and available at www.fitchratings.com.

The main proposals from the exposure draft that have been incorporated into the criteria are:

--Increased Emphasis on External Risk Factors

Fitch believes the operating model for charter schools exposes these entities to substantial external risks that are often outside the direct control of management. These include political risk, regulatory risk, and competitive risk. The agency will place greater emphasis on these qualitative factors in assigning charter school credit ratings.