Press Release|Public Finance

KBRA Revises Outlook to Stable From Positive, Affirms AA+ Rating, on Fort Worth, TX, General Purpose Bonds, Tax Notes, Obligation Certificates

1 May 2024   |   New York


KBRA has affirmed the long-term rating of AA+ to the General Purpose Bonds, Tax Notes and Combination Tax and Revenue Certificates of Obligation (collectively, "the General Obligations") of the City of Fort Worth, TX. The Outlook is revised to Stable from Positive.

The Outlook revision reflects KBRA’s observation that despite pension reform measures enacted in 2018, the City’s annual employer contributions to the Retirement Fund remain significantly below the actuarially determined contribution (ADC), as has been the case in each of the last ten years. While the Employees’ Retirement Fund’s $2.5 billion FY 2023 net pension liability (NPL) equates to a manageable 2.3% of the full market value of the City’s rapidly growing assessment base, in KBRA’s view, the plan’s extremely low funded ratio has the potential to restrict long-term financial flexibility should pension reforms fail to improve the plan’s funded status.

Key Credit Considerations

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

Credit Positives

  • Strong financial reserves and liquidity, bolstered by conservative budgeting practices and formal fiscal policies.
  • Vibrant economic growth, evidenced by a diverse and rapidly growing tax base.

Credit Challenges

  • Pension contributions remain below the ADC, and the funded ratio of the City’s Retirement Fund remains low despite numerous pension reforms enacted to date.
  • Partial reliance on potentially volatile sales tax revenue exposes the GF revenue base to economic fluctuations.

Rating Sensitivities

For Upgrade

  • Tangible progress in addressing full funding of the actuarially determined pension contribution

For Downgrade

  • Weakened financial flexibility due to lack of improvement or worsening of pension funding metrics.
  • Sustained reduction in tax revenues not sufficiently offset by permitted increases in property tax rates.

To access rating and relevant documents, click here.



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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1004102

805 Third Avenue
29th Floor
New York, NY 10022
+1 (212) 702-0707
Contact Us

© 2010-2024 Kroll Bond Rating Agency, LLC. All Rights Reserved. Kroll Bond Rating Agency, LLC is not affiliated with Kroll Inc., Kroll Associates Inc., KrollOnTrack Inc., or their affiliated businesses.