Press Release|Public Finance
KBRA Assigns AA- Rating for El Paso County Hospital District, TX - Limited Tax; Affirms Rating for Parity Bonds; Outlook is Stable
9 Jun 2025 | New York
KBRA assigns a long-term rating of AA- to the El Paso County Hospital District, TX General Obligation Bonds, Series 2025. Concurrently, KBRA affirms the long-term rating of AA- for El Paso County Hospital District, TX - Limited Tax. The Outlook is Stable.
Key Credit Considerations
The rating action reflects the following key credit considerations:
Credit Positives
- The District is the only safety net healthcare provider in the County and plays a critical role within the County’s public health mission.
- A growing tax base continues to generate strong property tax revenues for the District, thus supporting voter-authorized debt obligations.
- District’s ad valorem tax rate is well below the State Constitutional limit.
Credit Challenges
- Proposed capital initiatives may place upward pressure on operating expenses.
- Macroeconomic environment has placed upward pressure on wages.
Rating Sensitivities
For Upgrade
- Diversification of revenue mix to include a more sizable percentage of commercially-insured payors.
- A meaningful improvement in socioeconomic metrics.
For Downgrade
- Significant secular deceleration or declines in tax base growth pressuring ad valorem tax support.
- Trend of sharply increasing operating deficits requiring substantial increases in property tax support.
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