KBRA Affirms AAA Rating for Orange County, Florida's Sales Tax Revenue Bonds; Outlook is Stable

6 Jun 2025 | New York

KBRA affirms the long-term rating of AAA with a Stable Outlook for Orange County, Florida's Sales Tax Revenue Bonds.

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

Credit Positives

Sales Tax Proceeds provide ample existing and projected MADS coverage, even under KBRA stress scenarios.
The historically strong balance in the Sales Tax Trust Fund lends important revenue flexibility and liquidity.
Sales Tax Revenue Bond debt levels are low. Outstanding debt is scheduled to fully amortize within ten years.

Credit Challenges

The leisure and hospitality sector, which contributes to much of the County’s economic activity, is subject to macro-economic and other large-scale event risks which could contribute to volatility in Sales Tax Proceeds.

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For Downgrade

Significant deterioration in MADS coverage.
Negative trend in receipt of Sales Tax Proceeds due to significant economic disruption or major modification of the statutory distribution formula.

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