Press Release|Public Finance

KBRA Affirms AA+ Rating for City of El Paso, TX GO Bonds and Combination Tax and Revenue Certificates of Obligation

10 Apr 2024   |   New York


KBRA affirms the long-term rating of AA+ with a Stable Outlook for the City of El Paso, TX General Obligation Bonds and Combination Tax and Revenue Certificates of Obligation. The Outlook is Stable.

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

  • Conservative budget practices have supported increasing financial flexibility since 2014.
  • Total unassigned and committed general fund balances at 26.4% of expenditures as of FYE 2023 provide a large operating cushion.
  • Strong pension funding progress and modest OPEB obligations moderate fixed costs.

Credit Challenges

  • Weak per capita income and educational attainment.
  • Debt burden is moderately high.
  • Population and employment growth have lagged the State and the Nation over the last decade.

Rating Sensitivities

For Upgrade

  • Convergence of socioeconomic characteristics toward the State average.

For Downgrade

  • Significant and sustained deterioration in taxable assessed value.
  • Erosion in reserves and unrestricted liquidity.

To access rating and relevant documents, click here.



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003867

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