Press Release|Public Finance
KBRA Assigns AA+ to City of El Paso, TX General Obligation Refunding Bonds, Series 2025; Affirms Ratings for Related Bonds
17 Jun 2025 | New York
KBRA assigns a long-term rating of AA+ to the City of El Paso, TX General Obligation Refunding Bonds, Series 2025. KBRA additionally affirms the long term rating of AA+ for the City's outstanding General Obligation Bonds and Combination Tax and Revenue Certificates of Obligation. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Total unassigned and committed general fund balances at 25.4% of expenditures as of FYE 2024 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
- While not anticipated in the near-term, a significant convergence of socioeconomic characteristics toward the State average.
For Downgrade
- Significant and sustained deterioration in taxable assessed value.
- Erosion in reserves and unrestricted liquidity.
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