KBRA Affirms A Rating for Wise County, TX Branch Campus Maintenance Tax Lease Revenue Bonds

3 Apr 2025 | New York

KBRA affirms the long-term rating of A for the Wise County, TX Branch Campus Maintenance Tax Lease Revenue Bonds. The rating Outlook is Stable.

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

Credit Positives

Healthy growth in the County’s Net TAV over the last five years (11.5% CAGR).
Sufficient headroom between the current BCMT tax rate ($0.03250/$100) and the maximum rate ($0.0500) to support future increases, if needed.
District use of BCMT Revenue is limited to making Lease Payments under the Agreement, with operations and maintenance expenses at the Branch Campus paid after.

Credit Challenges

Weaker structural protections, including the lack of a rate covenant and a weak Additional Bonds Test (ABT).
Tax base vulnerable to the oil and gas industries, though the County continues to pursue economic diversification.

For Upgrade

A significant and sustained increase in the net TAV resulting in an increase in BCMT Revenue and MADS coverage.

For Downgrade

While not expected, a significant, sustained economic downturn that sharply reduces Pledged Revenues and MADS coverage.

To access ratings and relevant documents, click here.