Press Release|Public Finance
KBRA Affirms AA Rating, Stable Outlook for Sacramento City Unified School District General Obligation Bonds
7 Jun 2024 | New York
KBRA affirms the long-term rating of AA on the Sacramento City Unified School District (Sacramento County, CA) General Obligation Bonds. The Outlook is Stable.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Stable tax base with above average growth in population and assessed values provides solid source of GO debt repayment.
- Per consultation with KBRA external counsel, robust bondholder protections are afforded by the California Constitution and state law.
- The statutory framework for fiscal monitoring and reporting outlined in A.B. 1200 is a key credit strength.
Credit Challenges
- Financial operations are susceptible to reduced LCFF due to enrollment declines and to the potential for reduced State K-14 funding. The District has a history of structural budgetary imbalance.
Rating Sensitivities
For Upgrade
- Improvement in wealth metrics and assessed valuation per capita that is supportive of increased ad valorem revenues available for the payment of District G.O. debt service.
- Year-over-year declines in the ad valorem tax base.
To access rating and relevant documents, click here.