Press Release|Public Finance

KBRA Affirms A Rating, Stable Outlook on Wise County, TX Lease Revenue Refunding Bonds

5 Apr 2024   |   New York


KBRA affirms the long-term A rating with a Stable Outlook on Lease Revenue Refunding Bonds, Series 2021 (“the Bonds”) issued by Wise County, TX. Lease Payments made by Parker County Junior College District (“the District”) from Available Funds secure the Bonds. Available Funds are comprised of 1) the Branch Campus Maintenance Tax (BCMT); 2) any funding received from the State of Texas for operation of a Branch Campus in Wise County; and 3) other income generated by the District at the Branch Campus. Lease Payments are sized and structured to fully cover debt service on the Bonds.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • Healthy growth in the County’s net taxable assessed Value (Net TAV) over the last five years (13.6% CAGR).
  • Sufficient headroom between the current BCMT tax rate ($0.03250/$100) and the maximum rate ($0.0500) to support future increases, if needed.
  • District use of BCMT Revenue is limited to making Lease Payments under the Agreement, with operations and maintenance expenses at the Branch Campus paid after.

Credit Challenges

  • Weaker structural protections, including the lack of a rate covenant and a weak Additional Bonds Test (ABT).
  • Tax base concentration in oil and gas industries, though the County continues to pursue economic diversification.

Rating Sensitivities

For Upgrade

  • A significant and sustained increase in the net TAV resulting in an increase in BCMT Revenue and MADS coverage.

For Downgrade

  • While not expected, a significant, sustained economic downturn that sharply reduces Pledged Revenues and MADS coverage.

To access rating and relevant documents, click here.



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

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: 1003839

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