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KBRA Affirms the University of North Texas System RFS Bonds AA Rating, Stable Outlook

16 Apr 2026   |   New York

Contacts

KBRA affirms the AA rating, Stable Outlook on North Texas System Board of Regents Revenue Financing System ("RFS") Refunding and Improvement Bonds. RFS Obligations issued under the Master Resolution are payable from and solely secured by Pledged Revenues of the RFS System. Pledged Revenues consist of Revenue Funds, including all unencumbered funds and balances legally available to the Board.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • History of solid finances and liquidity, diverse funding sources and balanced financial operations.
  • Healthy undergraduate student demand, primarily derived from the State of Texas which continues to see population growth.

Credit Challenges

  • Ongoing plans for debt issuance driven by required capital needs that could leverage the balance sheet.
  • Recent volatility in graduate enrollment.

Rating Sensitivities

For Upgrade

  • Strengthened financial performance and liquidity, providing enhanced financial flexibility.

For Downgrade

  • While not expected, a significant increase in leverage which weakens the RFS security pledge and structure.
  • An inability to successfully reduce expenses to accommodate lower graduate enrollment or a significant decline in State funding that strains financial performance.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1014504