Press Release|Public Finance
KBRA Assigns AAA Rating with Stable Outlook to Round Rock Independent School District’s Unlimited Tax Refunding Bonds, Series 2025C
21 Oct 2025 | New York
KBRA assigns a long-term rating of AAA to Round Rock Independent School District's (the "District" or "RRISD") Series 2025C Unlimited Tax Refunding Bonds. Additionally, KBRA affirms the District's outstanding unlimited tax obligations at AAA. The Rating Outlook is Stable for the new and existing unlimited tax obligations (collectively, the "Bonds").
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Diverse and growing tax base that provides a reliable source of payment for the unlimited tax bonds.
- Plan to balance the general fund budget going forward via cost reductions as needed, rather than rely on general fund reserves.
- Strong financial management, policies, and procedures have historically supported strong unassigned reserves and liquidity.
Credit Challenges
- Trend of declining enrollment in recent years, combined with statutory changes to the State’s school funding construct have limited prospects for growth in operating resources.
Rating Sensitivities
For Upgrade
- Not applicable at the current rating level.
For Downgrade
- Declining trend in the ad valorem tax base.
- Failure to achieve structural general fund balance through alignment of expenditures to available funding.
- Drawdown of the unassigned general fund balance to a level, relative to the general fund expenditures, no longer commensurate with the current rating level.
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