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.