KBRA Assigns AA+ Rating to City of El Paso, TX General Obligation Refunding Bonds, Series 2024; Affirms Related Ratings
2024年5月16日 - 6:58AM
ビジネスワイヤ(英語)
KBRA assigns a long-term rating of AA+ to the City of El Paso,
Texas General Obligation Refunding Bonds, Series 2024. KBRA
additionally affirms the long-term rating of AA+ for the City's
outstanding General Obligation Bonds and Combined Tax and Revenue
Certificates of Obligation. The Outlook for each rating is
Stable.
Key Credit Considerations
The rating actions reflect the following key credit
considerations:
Credit Positives
- Conservative budget practices have supported increasing
financial flexibility since 2014.
- Total unassigned and committed general fund balances at 26.4%
of expenditures as of FYE 2023 provide a large operating
cushion.
- Strong pension funding progress and modest OPEB obligations
moderate fixed costs.
Credit Challenges
- Weak per capita income and educational attainment.
- Debt burden is moderately high.
- Population and employment growth have lagged the State and the
Nation over the last decade.
Rating Sensitivities
For Upgrade
- Convergence of socioeconomic characteristics toward the State
average.
For Downgrade
- Significant and sustained deterioration in taxable assessed
value.
- Erosion in reserves and unrestricted liquidity.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- Public Finance: U.S. Local Government General Obligation Rating
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
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: 1004333
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Analytical Contacts
Peter Scherer, Senior Director (Lead Analyst) +1 646-731-2325
peter.scherer@kbra.com
Douglas Kilcommons, Managing Director +1 646-731-3341
douglas.kilcommons@kbra.com
Karen Daly, Senior Managing Director (Rating Committee Chair) +1
646-731-2347 karen.daly@kbra.com
Business Development Contacts
William Baneky, Managing Director +1 646-731-2409
william.baneky@kbra.com
James Kissane, Senior Director +1 646-731-2380
james.kissane@kbra.com