Press Release|Public Finance

KBRA Affirms AAA Rating for Austin Independent School District Unlimited Tax Bonds

10 Jan 2024   |   New York


KBRA affirms the long-term rating of AAA with a Stable Outlook for the Austin Independent School District's Unlimited Tax Bonds (PSF) and Unlimited Tax Bonds (Non-PSF).

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

  • Strong financial management policies and an experienced, effective management team.
  • A diverse and growing economic base with AV in the District’s boundaries having grown at a CAGR of 9.8% from FY 2015 through FY 2024.
  • A highly conservative debt profile with a rapid amortization schedule, manageable long-term retirement liabilities (pension and OPEB), and moderate overall net debt burden.

Credit Challenges

  • State recapture of the District’s tax revenues reflects over 50% of the District’s GF expenditures for FY 2022 and FY 2023.
  • The District’s enrollment gradually declined in the 2010s and experienced a decline of 7.3% in SY 2020-2021. KBRA understands that AISD has early indications of stabilization in enrollment and is actively attempting to reclaim unenrolled students by modernizing school facilities.

Rating Sensitivities

For Upgrade

  • Not applicable at AAA rating level.

For Downgrade

  • While not expected a trend of decline in the ad valorem tax base may negatively impact the rating.

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: 1002986

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