KBRA Assigns AAA Rating to Austin Independent School District Unlimited Tax School Building Bonds, Series 2025 (PSF); Affirms Ratings for Outstanding Debt; Outlook is Stable
30 Jul 2025 | New York
KBRA assigns a AAA long-term rating with a Stable Outlook to Austin Independent School District’s (the "District") Unlimited Tax School Building Bonds, Series 2025 (PSF), and concurrently affirms the AAA long-term rating with a Stable Outlook for the District’s Unlimited Tax School Bonds (PSF) and Unlimited Tax School Bonds (Non-PSF) outstanding.
The Stable Outlook reflects KBRA’s expectation that management will continue to conservatively manage the District’s finances, that the tax base will continue to grow, and that the District’s overall net debt profile will remain moderate and well-managed as the District addresses its capital needs.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Large, diverse, and growing tax base provides reliable source of payment for the unlimited tax bonds.
- Strong financial management, policies, and procedures have historically sustained large unassigned reserves and strong liquidity.
Credit Challenges
- Declining enrollment and statutory changes to the State’s school funding system limit prospects for growth in operating resources and have contributed to recent budget deficits.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- Failure to gradually restore structural balance coupled with depletion of reserves to a level inconsistent with the rating level.
- Continued reliance on non-recurring revenue sources to address budgetary shortfalls.
- While not expected a trend of decline in the ad valorem tax base may negatively impact the rating.
To access ratings and relevant documents, click here.