Press Release|Public Finance
KBRA Assigns Round Rock Independent School District’s (TX) Series 2026AB Unlimited Tax and Variable Rate Unlimited Tax School Building Bonds AAA and Affirms Unlimited Tax Obligations at AAA; Outlook Stable
4 Feb 2026 | New York
KBRA assigns a long-term rating of AAA to Round Rock Independent School District's (the "District's" or "RRISD's") Series 2026A and Series 2026B Unlimited Tax School Building Bonds and Variable Rate Unlimited Tax School Building Bonds, respectively. Additionally, KBRA affirms the District's outstanding unlimited tax obligations at AAA. The Rating Outlook is Stable for the new and existing unlimited tax obligations.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- A diverse and growing tax base providing a reliable source of payment for the unlimited tax bonds.
- Sizeable recapture payments were not required in FY 2025, narrowing the District’s general fund (GF) budget gap, with the potential to move back to structural GF balance in FY 2026, following the Texas Education Agency's impending update of the State funding calculation.
- Strong financial management, policies, and procedures have supported sound unassigned reserves and liquidity.
Credit Challenges
- A trend of declining-to-flat enrollment in recent years, combined with statutory changes to the State’s school funding system have limited prospects for growth in operating resources.
Rating Sensitivities
For Upgrade
- Not applicable at the current rating level.
For Downgrade
- Failure to achieve structural GF balance through alignment of expenditures to resources, resulting in a depletion of reserves to levels no longer commensurate with the rating.
- Declining trend in the ad valorem tax base.
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