Press Release|Public Finance
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KBRA Assigns AA+ Rating to the Metropolitan Government of Nashville and Davidson County, TN General Obligation Improvement Bonds; Outlook Stable

12 Feb 2026   |   New York

Contacts

KBRA assigns a long-term rating of AA+ to the following series of bonds of the Metropolitan Government of Nashville and Davidson County, TN ("Metro"):

  • General Obligation Improvement Bonds Series 2026 A
  • General Obligation Improvement Bonds Series 2026B
  • General Obligation Improvement Bonds Series 2026C
  • General Obligation Refunding Bonds Series 2026D

Concurrently, KBRA affirms the long-term rating of AA+ on Metro's outstanding General Obligation Improvement Bonds. The Outlook is Stable.

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

  • Ten-year trend of robust growth in property tax receipts driven by rapid tax base expansion.
  • Well-maintained financial operations, stemming from sound revenue performance and expenditure restraint, and supported by sound financial, debt and reserve policies.
  • Favorable socioeconomic and demographic trends characterized by solid income and employment growth.

Credit Challenges

  • Significant growth-related capital needs related to Metro’s broad responsibilities as a city/county government.
  • Elevated fixed costs and the presence of contingent liabilities related to debt of Metro-controlled authorities.
  • The high OPEB liability is a structural credit challenge that can negatively impact future budget flexibility.

Rating Sensitivities

For Upgrade

  • Maintenance of financial reserves in accordance with policy.
  • Elimination of the subsidy to Nashville General Hospital, which KBRA presently views as unlikely.

For Downgrade

  • Significant unplanned draws on accumulated reserves.
  • Failure to adhere to adopted policies and procedures.
  • Budgetary flexibility materially constrained by rising fixed costs and/or weakening reserves.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1013460