Press Release|Public Finance
KBRA Affirms AA+ Rating for Pflugerville Independent School District, TX Unlimited Tax Bonds (Non-PSF)
31 Jan 2025 | New York
KBRA affirms the long-term rating of AA+ with a Stable Outlook for the Pflugerville Independent School District, TX Unlimited Tax Bonds (Non-PSF).
KBRA’s rating applies to bonds that are Non-PSF obligations, meaning that such series were not issued with a guarantee from the State’s Permanent School Fund (“PSF”) for the timely payment of principal and interest. KBRA’s rating is based solely on the underlying credit standing of the District.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Large, diverse, and rapidly growing tax base provides reliable source of payment for unlimited tax bonds.
- Strong financial management, policies, and procedures have consistently sustained large unassigned reserves.
Credit Challenges
- Direct and overlapping debt burden is very high and will likely increase further in support to continuing economic development.
- Recent declines in enrollment and statutory changes in the State’s school funding system limit prospects for growth in operating resources.
Rating Sensitivities
For Upgrade
- A tempering of debt metrics, either by principal amortization or continued tax base growth.
For Downgrade
- While not expected, a trend of decline in the ad valorem tax base.
- Erosion in reserves or unrestricted liquidity to levels no longer commensurate with the rating level.
- Significant increase in the direct and overlapping debt burden.
To access ratings and relevant documents, click here.