El Paso Independent School District, TX – Unlimited Tax Obligations (PSF) Rating Report

Rating Summary

The long-term rating reflects the inherent strength of the El Paso Independent School District’s (the “District’s” or EPISD’s) unlimited tax ad valorem payment pledge, the sizable and relatively stable El Paso-area economic base and a manageable tax-supported debt burden. Counterbalancing these strengths are the District’s significant recent deterioration in financial performance, declining enrollment, and reduced reserves, as a new management team works to right-size expenses.

Unlimited Tax School Building Bonds are payable from a direct and continuing pledge of ad valorem taxes levied on all taxable property within the District, without limitation as to rate or amount. The District’s outstanding Unlimited Tax School Building Bonds benefit from a guarantee by the State’s Permanent School Fund (PSF) Guarantee Program for the full and timely payment of principal and interest. However, KBRA’s rating is based solely on the underlying credit standing of the District, without…