S&P rating agency warns of credit impact of Massachusetts charter school expansion
A second ratings agency has warned of the danger that having too many charter schools poses to city and town credit ratings.
S&P Global Ratings, in a report published Monday, said so far charter schools have not affected municipal credit ratings in Massachusetts, but the agency is keeping an eye on cities like Boston, Holyoke and Springfield that have large numbers of charter school students.
"Even within the confines of the existing cap, if not managed effectively in the future, charter school expansion may serve as a credit pressure," S&P analysts wrote. "This is particularly true in municipalities that have a limited capacity to cut expenditures and where demand for charter schools is high."
The Moody's ratings agency wrote similarly last month that it is a positive for municipal credit ratings that a ballot question that would have expanded charter schools failed in November.
Read more: http://www.masslive.com/politics/index.ssf/2016/12/sp_rating_agency_warns_of_cred.html
