Press Release|Public Finance
KBRA Affirms AAA Rating for Dallas Area Rapid Transit Senior Lien Sales Tax Revenue Bonds
18 Oct 2024 | New York
KBRA affirms the long-term rating of AAA with a Stable Outlook for the Dallas Area Rapid Transit Senior Lien Sales Tax Revenue Bonds.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Gross nature of the sales tax pledge coupled with its limited historic volatility and trend of growth provide a very strong source of repayment.
- Sizable, diverse, and growing service area with the nation’s fourth largest metropolitan area.
- Conservative additional bonds test.
Credit Challenges
- Bonds are largely secured by sales taxes, collections of which may at times be adversely affected by economic factors.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- Sharp reduction in pledged sales tax revenue collections.
- Reduction to the 1% sales tax allocation.
To access ratings and relevant documents, click here.