Press Release|Public Finance
KBRA Assigns AAA Rating to Harris County Flood Control District, TX Improvement Refunding Bonds Series 2025, Contract Tax Refunding Bonds Series 2025A, and Outstanding Contract Tax Obligations; Affirms AAA Rating for Limited Tax Obligations
9 Jul 2025 | New York
KBRA assigns a long-term rating of AAA for the Harris County Flood Control District, TX Improvement Bonds Refunding Bonds Series 2025, Contract Tax Refunding Bonds Series 2025A, and outstanding Contract Tax Obligations. Additionally, KBRA affirms the long-term rating of AAA for the District's Limited Tax Obligations. The rating Outlook is Stable.
Key Credit Considerations
The ratings actions reflect the following key credit considerations:
Credit Positives
- Sizable and diversifying economy, centered around the Nation’s fourth largest city, which has benefited from above average property tax base growth.
- Historically stable property tax collections through a variety of economic cycles, which KBRA believes demonstrates the area’s economic and tax base resilience.
- The County electorate in November 2024 approved a permanent increase in the O&M property tax levy for the Harris County Flood Control District that will provide an additional $100 million each year toward activities mitigating future flood risks and protecting the property tax base.
- Ample headroom between levied District Tax rate and the statutory maximum rate.
Credit Challenges
- Susceptibility to significant storm activity given its domicile on Texas’s Gulf Coast, as evidenced by Hurricane Harvey and other tropical systems, which have necessitated borrowing to bolster infrastructure resiliency.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- A sizable and sustained economic contraction for the County / Houston-The Woodlands-Sugarland MSA, resulting in a material reduction in the tax base.
To access ratings and relevant documents, click here.