Press Release|Public Finance
KBRA Assigns AAA Rating to Harris County, Texas: Permanent Improvement Refunding Bonds, Series 2024A; Unlimited Tax Road Refunding Bonds, Series 2024A; and Permanent Improvement Tax and Revenue Certificates of Obligation, Series 2024
20 Jun 2024 | New York
KBRA assigns a long-term rating of AAA to the Harris County, Texas: Permanent Improvement Refunding Bonds, Series 2024A; Unlimited Tax Road Refunding Bonds, Series 2024A; and Permanent Improvement Tax and Revenue Certificates of Obligation, Series 2024. KBRA additionally affirms the long-term rating of AAA for the County's outstanding Limited Tax Obligations and Unlimited Tax Obligations. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Sizable and diversifying economy, centered around the nation’s fourth largest city, that has benefitted from above average property tax base growth.
- Strong financial profile supported by generally favorable operations and considerable balance sheet resources, derived from stable property tax collections.
- Robust financial management practices, including a comprehensive budgeting process, frequent intra-fiscal year monitoring, and the maintenance of prudent reserves.
Credit Challenges
- Susceptibility to significant storm activity given its domicile on Texas’s Gulf Coast, as evidenced by Hurricane Harvey.
Rating Sensitivities
For Upgrade
- Not applicable for this rating level.
For Downgrade
- Significant deterioration in operating reserves and liquidity.
- A secular decline in the socioeconomic profile of the County.
To access rating and relevant documents, click here.