Texas Fund’s First Charter-School Pledges Buoy Debt: Muni Credit
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Texas public charter schools, the fastest-growing part of the state’s education system, are poised to see their bonds go to top grade from near junk as a $33 billion fund backed by oil revenue prepares to guarantee the securities for the first time.
The Texas Permanent School Fund, created in 1876, insures $59 billion of bonds sold by the state’s districts, helping issuers lower interest costs for projects from classrooms to football stadiums. A plan extending the pledge to investment-grade charter schools won Internal Revenue Service approval in September.