Press Release|Public Finance

KBRA Affirms AAA Rating with Stable Outlook for State of Texas GO Bonds

4 Aug 2023   |   New York


KBRA affirms the long-term rating of AAA with a Stable Outlook for the State of Texas’s General Obligation Bonds. KBRA additionally affirms the long-term rating of AAA with a Stable Outlook for the Texas Transportation Commission’s State of Texas Highway Improvement General Obligation Bonds and State of Texas General Obligation Mobility Fund Bonds.

Key Credit Considerations

The ratings were affirmed because of the following key credit considerations:

Credit Positives

  • The State’s broad and diverse economy is among the fastest growing in the Nation.
  • Conservative budget procedures and financial management practices support consistently strong reserve levels and operating flexibility.
  • The debt burden is low in terms of direct debt per capita and debt expense as a percentage of expenditures.

Credit Challenges

  • Increasing fiscal pressure to fund the necessary infrastructure to keep up with economic and population growth, specifically in the areas of transportation and education.

Rating Sensitivities

For Upgrade

  • Not applicable at AAA rating level.

For Downgrade

  • Sustained trend of structural imbalance in the State’s general operating funds and significant deterioration in the level of the Economic Stabilization Fund.

To access rating and relevant documents, click here.


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

© 2010-2023 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.