Ranking Action: Moody’s affirms Baa3 on Summit Community Universities Obligated Team, CA’s income bonds outlook revised to stableGlobal Credit history Investigate – 14 Feb 2022New York, February 14, 2022 — Moody’s Buyers Company has affirmed the Baa3 score on Summit Public Schools Obligated Team, CA’s Constitution Faculty Revenue Bonds (Summit Community Educational facilities – Obligated Team) Sequence 2017. Concurrently, Moody’s has revised the outlook to steady from destructive. The rating and revised outlook have an affect on somewhere around $23.8 million in remarkable income bonds.Rankings RATIONALEThe Baa3 score displays university student enrollment approaching full enrollment at the two obligated team educational institutions supported by the opening of Denali’s new high university in the fall of 2020, the narrow funds of the obligated educational institutions with personal debt assistance coverage bolstered by pledged management costs of the house workplace, and reduced leverage next a $5 million early defeasance of credit card debt in fiscal 2021. The rating also incorporates the receipt of sizeable federal a person-time grants approaching $15 million for the group, which has served to stabilize economic performance of the obligated team supplied revenue and enrollment declines in fiscal 2021 stemming from a reduction in contributions and the coronavirus pandemic.Ranking OUTLOOKThe secure outlook displays the likelihood that enrollment at the two obligated schools will increase toward full enrollment supported by graduation premiums and academic general performance that exceed point out averages. The outlook also incorporates the expectation that economical operations at equally of the obligated team educational facilities will become self-supporting.Factors THAT COULD Guide TO AN Improve OF THE Rating- Attainment and maintenance of self-supporting functions at equally of the obligated team schools- Recurring comprehensive enrollment at the two faculties with favorable waitlist- Debt services coverage and liquidity that strongly exceeds historic figuresFACTORS THAT COULD Lead TO A DOWNGRADE OF THE Rating- Continued enrollment and income declines outdoors of one-time grants- Weakened credit card debt company coverage or liquidity- Soaring aid of network college operations by Summit’s property officeLEGAL SECURITYLease payments from Obligated Group users to the Local community Superior School Basis, a California nonprofit company, signify the source of repayment less than the Personal loan Settlement. Two educational facilities alongside with Summit’s house place of work characterize users of the Obligated Team for the Series 2017 bonds: Summit Shasta and Summit Denali higher college. The House Business revenues are derived from the management rate SPS expenses its member universities, which equals 14.5% of state apportionment revenues of ten community schools located in California and Washington, as very well as philanthropic contributions. Serving as a credit score toughness, payment obligations less than different leases with every single member of the Obligated Group are cross-collateralized, and the Trustee is authorized to cost added rents to possibly Obligated Team member if expected.PROFILESummit Public Educational institutions Obligated Team is a constitution management corporation started in 2003 with 1 college, which has because expanded to 10 schools all through the California Bay Region and Washington Condition serving grades 6-12. Whole method enrollment for educational calendar year 2021 – 2022 equals 4,340. Prior to the pandemic in fiscal 2019, Summit Public Educational facilities claimed an enrollment of 4,453. Shasta higher school serves 458 students in Daly City, and Denali substantial faculty serves 377 learners in grades 9-12 in the Metropolis of Sunnyvale.METHODOLOGYThe principal methodology applied in this score was US Charter Colleges revealed in September 2016 and available at https://www.moodys.com/investigate/US-Charter-Universities–PBM_1039451. Alternatively, please see the Score Methodologies site on www.moodys.com for a copy of this methodology.REGULATORY DISCLOSURESFor further more specification of Moody’s key rating assumptions and sensitivity assessment, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure type. Moody’s Ranking Symbols and Definitions can be identified at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For ratings issued on a plan, collection, classification/class of credit card debt or safety this announcement supplies particular regulatory disclosures in relation to every ranking of a subsequently issued bond or notice of the very same collection, classification/class of debt, safety or pursuant to a system for which the rankings are derived completely from current ratings in accordance with Moody’s ranking methods. For scores issued on a assistance provider, this announcement gives specified regulatory disclosures in relation to the credit history ranking action on the support company and in relation to each individual unique credit rating ranking motion for securities that derive their credit rating ratings from the help provider’s credit rating score. For provisional ratings, this announcement delivers particular regulatory disclosures in relation to the provisional score assigned, and in relation to a definitive ranking that might be assigned subsequent to the final issuance of the credit card debt, in every single circumstance where the transaction framework and conditions have not transformed prior to the assignment of the definitive rating in a method that would have affected the rating. For even further data be sure to see the rankings tab on the issuer/entity webpage for the respective issuer on www.moodys.com.Regulatory disclosures contained in this push launch use to the credit history ranking and, if relevant, the connected ranking outlook or score review.Moody’s common concepts for assessing environmental, social and governance (ESG) threats in our credit score examination can be discovered at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.You should see www.moodys.com for any updates on changes to the direct ranking analyst and to the Moody’s lawful entity that has issued the rating.You should see the ratings tab on the issuer/entity web site on www.moodys.com for added regulatory disclosures for every credit ranking. Helen Cregger Lead Analyst REGIONAL_WEST Moody’s Traders Support, Inc. 405 Howard Road Suite 300 San Francisco 94105 JOURNALISTS: 1 212 553 0376 Customer Assistance: 1 212 553 1653 Roger Brown More Call REGIONAL_SOUTHWEST JOURNALISTS: 1 212 553 0376 Shopper Service: 1 212 553 1653 Releasing Workplace: Moody’s Investors Services, Inc. 250 Greenwich Avenue New York, NY 10007 U.S.A JOURNALISTS: 1 212 553 0376 Client Assistance: 1 212 553 1653 © 2022 Moody’s Company, Moody’s Buyers Assistance, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliate marketers (collectively, “MOODY’S”). All legal rights reserved.Credit rating Scores ISSUED BY MOODY’S Credit rating Ratings Affiliate marketers ARE THEIR Recent Viewpoints OF THE RELATIVE Future Credit score Hazard OF ENTITIES, Credit history COMMITMENTS, OR Debt OR Financial debt-LIKE SECURITIES, AND Supplies, Products and solutions, Providers AND Details Printed BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) May well Consist of Such Recent Thoughts. MOODY’S DEFINES Credit Risk AS THE Threat THAT AN ENTITY Might NOT Fulfill ITS CONTRACTUAL Economic OBLIGATIONS AS THEY Appear Due AND ANY Believed Economical Reduction IN THE Function OF DEFAULT OR IMPAIRMENT. SEE Relevant MOODY’S Score SYMBOLS AND DEFINITIONS PUBLICATION FOR Info ON THE Styles OF CONTRACTUAL Financial OBLIGATIONS Addressed BY MOODY’S Credit score Ratings. Credit score Scores DO NOT Deal with ANY OTHER Risk, Such as BUT NOT Minimal TO: LIQUIDITY Risk, Market place Price Hazard, OR Price tag VOLATILITY. Credit Scores, NON-Credit ASSESSMENTS (“ASSESSMENTS”), AND OTHER Opinions Included IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF Latest OR Historical Point. MOODY’S PUBLICATIONS May possibly ALSO Include QUANTITATIVE Model-Primarily based ESTIMATES OF Credit score Possibility AND Similar Views OR COMMENTARY Revealed BY MOODY’S ANALYTICS, INC. AND/OR ITS Affiliates. MOODY’S Credit history Rankings, ASSESSMENTS, OTHER Thoughts AND PUBLICATIONS DO NOT Represent OR Provide Investment OR Monetary Guidance, AND MOODY’S Credit score Scores, ASSESSMENTS, OTHER Views AND PUBLICATIONS ARE NOT AND DO NOT Present Suggestions TO Buy, Offer, OR Maintain Certain SECURITIES. MOODY’S Credit rating Scores, ASSESSMENTS, OTHER Opinions AND PUBLICATIONS DO NOT Remark ON THE SUITABILITY OF AN Financial commitment FOR ANY Certain Investor. MOODY’S Concerns ITS Credit history Scores, ASSESSMENTS AND OTHER Thoughts AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND Comprehending THAT Every Trader WILL, WITH Due Treatment, MAKE ITS Possess Examine AND Evaluation OF Each and every Protection THAT IS Less than Consideration FOR Invest in, Holding, OR SALE.MOODY’S Credit score Scores, ASSESSMENTS, OTHER Opinions, AND PUBLICATIONS ARE NOT Intended FOR USE BY RETAIL Buyers AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL Buyers TO USE MOODY’S Credit score Ratings, ASSESSMENTS, OTHER Thoughts OR PUBLICATIONS WHEN Building AN Expense Conclusion. IF IN Doubt YOU Really should Make contact with YOUR Money OR OTHER Experienced ADVISER.ALL Facts CONTAINED HEREIN IS Shielded BY Legislation, Like BUT NOT Constrained TO, COPYRIGHT Law, AND NONE OF These kinds of Data May possibly BE COPIED OR Usually REPRODUCED, REPACKAGED, Even more TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR Stored FOR SUBSEQUENT USE FOR ANY These types of Objective, IN Full OR IN Aspect, IN ANY Form OR Fashion OR BY ANY Implies In any way, BY ANY Human being Devoid of MOODY’S PRIOR Prepared CONSENT.MOODY’S Credit Scores, ASSESSMENTS, OTHER Viewpoints AND PUBLICATIONS ARE NOT Meant FOR USE BY ANY Individual AS A BENCHMARK AS THAT Time period IS Defined FOR REGULATORY Needs AND Have to NOT BE Utilised IN ANY WAY THAT COULD End result IN THEM Being Thought of A BENCHMARK.All facts contained herein is obtained by MOODY’S from sources thought by it to be exact and dependable. Because of the probability of human or mechanical error as well as other things, having said that, all data contained herein is delivered “AS IS” with no guarantee of any sort. MOODY’S adopts all required actions so that the data it utilizes in assigning a credit score is of enough high-quality and from sources MOODY’S considers to be reliable including, when correct, independent 3rd-party resources. Nevertheless, MOODY’S is not an auditor and cannot in each occasion independently verify or validate info obtained in the ranking method or in planning its Publications.To the extent permitted by regulation, MOODY’S and its administrators, officers, workers, agents, representatives, licensors and suppliers disclaim liability to any particular person or entity for any indirect, special, consequential, or incidental losses or damages in any way arising from or in link with the data contained herein or the use of or incapacity to use any this kind of information, even if MOODY’S or any of its directors, officers, employees, brokers, representatives, licensors or suppliers is recommended in progress of the chance of such losses or damages, which include but not limited to: (a) any reduction of present or future income or (b) any loss or harm arising where by the related economical instrument is not the topic of a specific credit score score assigned by MOODY’S.To the extent permitted by law, MOODY’S and its administrators, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages induced to any particular person or entity, including but not confined to by any carelessness (but excluding fraud, willful misconduct or any other type of legal responsibility that, for the avoidance of question, by law can not be excluded) on the section of, or any contingency in or beyond the handle of, MOODY’S or any of its administrators, officers, workforce, brokers, associates, licensors or suppliers, arising from or in link with the info contained herein or the use of or lack of ability to use any such information and facts.NO Guarantee, Convey OR IMPLIED, AS TO THE Accuracy, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR Physical fitness FOR ANY Specific Objective OF ANY Credit Rating, Assessment, OTHER Feeling OR Details IS Specified OR Built BY MOODY’S IN ANY Kind OR Manner By any means.Moody’s Traders Company, Inc., a wholly-owned credit history rating company subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of credit card debt securities (such as corporate and municipal bonds, debentures, notes and industrial paper) and most popular inventory rated by Moody’s Buyers Service, Inc. have, prior to assignment of any credit ranking, agreed to shell out to Moody’s Investors Service, Inc. for credit scores thoughts and products and services rendered by it charges ranging from $1,000 to somewhere around $5,000,000. MCO and Moody’s Buyers Assistance also keep insurance policies and strategies to tackle the independence of Moody’s Traders Service credit score ratings and credit ranking processes. Information and facts regarding certain affiliations that may well exist among directors of MCO and rated entities, and amongst entities who keep credit rating ratings from Moody’s Investors Company and have also publicly reported to the SEC an ownership fascination in MCO of extra than 5%, is posted per year at www.moodys.com below the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Fiscal Solutions License of MOODY’S affiliate, Moody’s Traders Assistance Pty Confined ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as relevant). This document is meant to be provided only to “wholesale clients” inside of the indicating of portion 761G of the Firms Act 2001. By continuing to entry this document from within just Australia, you characterize to MOODY’S that you are, or are accessing the document as a consultant of, a “wholesale client” and that neither you nor the entity you symbolize will instantly or indirectly disseminate this doc or its contents to “retail clients” inside the that means of portion 761G of the Companies Act 2001. MOODY’S credit ranking is an impression as to the creditworthiness of a financial debt obligation of the issuer, not on the fairness securities of the issuer or any kind of stability that is readily available to retail investors.Extra phrases for Japan only: Moody’s Japan K.K. (“MJKK”) is a wholly-owned credit rating score agency subsidiary of Moody’s Team Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating score agency subsidiary of MJKK. MSFJ is not a Nationally Identified Statistical Ranking Business (“NRSRO”). Consequently, credit rating rankings assigned by MSFJ are Non-NRSRO Credit Scores. Non-NRSRO Credit score Scores are assigned by an entity that is not a NRSRO and, therefore, the rated obligation will not qualify for specific sorts of therapy less than U.S. legislation. MJKK and MSFJ are credit history ranking agencies registered with the Japan Economical Companies Company and their registration quantities are FSA Commissioner (Ratings) No. 2 and 3 respectively.MJKK or MSFJ (as applicable) hereby disclose that most issuers of financial debt securities (which include company and municipal bonds, debentures, notes and business paper) and desired inventory rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit history score, agreed to pay out to MJKK or MSFJ (as relevant) for credit rating scores opinions and providers rendered by it costs ranging from JPY100,000 to roughly JPY550,000,000.MJKK and MSFJ also manage policies and techniques to handle Japanese regulatory requirements.