Press Release|Public Finance
KBRA Assigns Texas Tech University System RFS Bonds at AA+, Stable Outlook
30 Jan 2025 | New York
KBRA assigns a AA+, Stable Outlook to Texas Tech University System Board of Regents Revenue Financing System ("RFS") Refunding and Improvement Bonds Series 2025A and RFS Refunding and Improvement Bonds Taxable Series 2025B to be issued on behalf of the Texas Tech University System. Concurrently, KBRA affirms outstanding RFS obligations issued under the Master Resolution and payable from and solely secured by Pledged Revenues of the RFS System.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Solid finances, characterized by substantial liquidity, diverse funding, and typically balanced operations.
- Healthy student demand, driven by an expansive operation that includes academic and health institutions.
- Highly experienced and stable leadership team.
Credit Challenges
- On-going plans for debt issuance driven by capital-intensive nature of operations.
Rating Sensitivities
For Upgrade
- Strengthened financial performance and liquidity, providing enhanced financial flexibility.
For Downgrade
- While not expected, a significant increase in leverage that strains the Revenue Financing System (RFS) security pledge and structure.
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