Weslaco, TX (October 09, 2019) – IDEA Public Schools (IDEA) announced today that it has become the first charter school network in history to earn an ‘A’ rating by S&P. IDEA broke through the “B” credit rating category when it was upgraded to a ‘A-‘ by the bond rating agency S&P. IDEA is the only charter school to reach this high of a rating without additional enhancement from a third party. Similar to an individual’s credit score, the upgrade signifies IDEA’s creditworthiness and financial soundness, giving the charter school network the opportunity to issue debt to finance projects with lower interest rates.
IDEA is the highest achieving, fastest growing charter school network in the country with at least 20% growth year over year. Beginning in the Rio Grande Valley as a single-site charter school, today, IDEA has 96 schools and more than 53,000 students. They have achieved 100% college acceptance and matriculation for 13 consecutive years, which combined with strong performance in all other academic areas, S&P viewed as a favorable market demand factor allowing IDEA to raise more money for its current expansion.
“We are proud to celebrate another first with this rating update,” said Wyatt Truscheit, IDEA Public Schools Chief Financial Officer. “Across our district, our Team & Family work hard every day to prepare our scholars on the road to and through college. This upgrade affirms our team’s efforts in making that happen, which includes our management team in keeping us fiscally sound to teachers and staff who help our students achieve academic success. This is a testament to their hard work and us making progress towards our mission of College For All.”
Beyond strong financial metrics, S&P attributed the upgrade to IDEA’s solid growth, high profile on a national scale, academic success and strong management practices. The credit agency also believed IDEA would maintain a steady financial profile due to its strategic financial practices, conservative modeling and flexibility despite an aggressive expansion planned over the next two years. S&P also anticipates the school’s “demand profile will continue to reflect very strong academics and increasing enrollment.”
IDEA will be issuing an estimated $213 million in bonds to fund the development of multiple campuses including 20 new schools in the Rio Grande Valley, San Antonio, Austin, El Paso, Tarrant County, and Houston regions for fall of 2020.