KBRA Assigns AAA Rating to Harris County, Texas: Permanent Improvement Refunding Bonds, Series 2024A; Unlimited Tax Road Refunding Bonds, Series 2024A; and Permanent Improvement Tax and Revenue Certificates of Obligation, Series 2024
June 20 2024 - 2:58PM
Business Wire
KBRA assigns a long-term rating of AAA to the Harris County,
Texas: Permanent Improvement Refunding Bonds, Series 2024A;
Unlimited Tax Road Refunding Bonds, Series 2024A; and Permanent
Improvement Tax and Revenue Certificates of Obligation, Series
2024. KBRA additionally affirms the long-term rating of AAA for the
County's outstanding Limited Tax Obligations and Unlimited Tax
Obligations. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit
considerations:
Credit Positives
- Sizable and diversifying economy, centered around the nation’s
fourth largest city, that has benefitted from above average
property tax base growth.
- Strong financial profile supported by generally favorable
operations and considerable balance sheet resources, derived from
stable property tax collections.
- Robust financial management practices, including a
comprehensive budgeting process, frequent intra-fiscal year
monitoring, and the maintenance of prudent reserves.
Credit Challenges
- Susceptibility to significant storm activity given its domicile
on Texas’s Gulf Coast, as evidenced by Hurricane Harvey.
Rating Sensitivities
For Upgrade
- Not applicable for this rating level.
For Downgrade
- Significant deterioration in operating reserves and
liquidity.
- A secular decline in the socioeconomic profile of the
County.
To access rating and relevant documents, click here.
Methodologies
- Public Finance: U.S. Local Government General Obligation Rating
Methodology
- ESG Global Rating Methodology
Disclosures
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1004830
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240620524483/en/
Analytical
Peter Scherer, Senior Director (Lead Analyst) +1 646-731-2325
peter.scherer@kbra.com
Michael Taylor, Senior Director +1 646-731-3357
michael.taylor@kbra.com
Douglas Kilcommons, Managing Director (Rating Committee Chair)
+1 646-731-3341 douglas.kilcommons@kbra.com
Business Development
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com
James Kissane, Senior Director +1 646-731-2380
james.kissane@kbra.com