Executive Summary
This document describes KBRA’s rating methodology as it pertains to bonds issued by public sector entities and secured by revenues generated from a tax or assessment on real property. It serves as an overarching guide to assessing these property tax/assessment revenue based financings, which includes a range of special assessment bonds (Mello-Roos district bonds, community development district bonds), tax increment bonds (tax allocation bonds), and bonds secured by a dedicated portion of the property tax levy, among others, issued by public sector entities. The methodology identifies the key rating determinants used in the rating assessment and discusses how the determinants are applied in making a rating determination.
KBRA uses the following key Rating Determinants when determining a rating. They include:
- Legal Framework
- Nature of Property Tax/Assessment Revenue Base
- Economic Base and Demographics
- Revenue Analysis
- Debt Service…