Press Release|Public Finance
KBRA Assigns AAA Rating, Stable Outlook to Buncombe County, NC Series 2026AB GO Bonds, AA+ Rating, Stable Outlook to Series 2026ABC Limited Obligation Bonds
16 Apr 2026 | New York
KBRA assigns a long-term rating of AAA to the County of Buncombe, NC General Obligation Bonds, Series 2026A, and Taxable General Obligation Bonds, Series 2026B. KBRA also assigns a long-term rating of AA+ to the County of Buncombe, NC Limited Obligation Bonds Series 2026A, Series 2026B, and Taxable Series 2026C. KBRA additionally affirms the long-term ratings of AAA for the County's outstanding General Obligation Bonds and AA+ for the County's outstanding Limited Obligation Bonds. The Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Strong financial reserves and liquidity provide meaningful flexibility to manage County operations including ongoing post-Helene recovery.
- The County’s debt and additional continuing obligations profile is conservative, characterized by very affordable fixed costs related to debt service, pensions, and OPEB.
Credit Challenges
- Full and timely reimbursement of eligible disaster-related costs could be delayed or in some cases denied due to administrative and other requirements.
- Management expects reserves and liquidity to remain sufficient through the recovery period, but both are likely to experience modest pressure in FY 2026.
Rating Sensitivities
For Upgrade
- Not applicable given AAA rating level for GO.
For Downgrade
- Material decline in reserves and liquidity beyond the current forecast to levels no longer consistent with the rating.
- Weak or incomplete economic recovery resulting in sustained revenue pressure.
To access ratings and relevant documents, click here.