KBRA Assigns AAA to Texas Transportation Commission State of Texas General Obligation Mobility Fund and Refunding Bonds, Series 2026-A and State of Texas General Obligation Mobility Fund Put Bonds, Series 2026-B (Multiannual Mode); Affirms Related Ratings
10 Jul 2026 | New York
KBRA assigns a long-term rating of AAA to the Texas Transportation Commission State of Texas General Obligation Mobility Fund and Refunding Bonds, Series 2026-A and State of Texas General Obligation Mobility Fund Put Bonds, Series 2026-B (Multiannual Mode). KBRA additionally affirms the long-term rating of AAA for the Commission's State of Texas Highway Improvement General Obligation Bonds and State of Texas General Obligation Mobility Fund Bonds as well as the State's General Obligation Bonds. The rating Outlook for each obligation is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- The State’s broad and diverse economy is among the fastest growing in the Nation.
- Conservative budget procedures and financial management practices support consistently strong reserve levels and operating flexibility.
- The debt burden is low in terms of direct debt per capita and debt expense as a percentage of expenditures.
Credit Challenges
Increasing fiscal pressure to fund the necessary infrastructure and operational costs to keep up with economic and population growth, specifically in the areas of transportation and education.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- Sustained trend of structural imbalance in the State’s general operating funds and significant deterioration in the level of the Economic Stabilization Fund.
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