KBRA Affirms AAA Rating, Stable Outlook on Tarrant County Hospital District, TX Limited Tax Bonds
28 Apr 2026 | New York
KBRA affirms the long-term rating of AAA, with a Stable Outlook on the Tarrant County Hospital District, TX Limited Tax Bonds.
Limited Tax Bonds are direct obligations of Tarrant County Hospital District (the District), payable from the levy and collection of an ad valorem tax levied within the District by the Commissioner’s Court for the benefit of the District, subject to certain limitations.
Key Credit Considerations
The rating action reflects the following key credit considerations:
Credit Positives
- The District is the only safety net healthcare provider in the County and plays a critical role within the County’s public health mission.
- Growth in the District's tax base has historically provided strong operating support without the need for ad valorem tax rate increases and the current rate is well below the constitutional limit.
Credit Challenges
- Property tax levy was lowered for a third consecutive year in FY 2026 resulting in a measured reduction in operating support.
- Capital program projects are expected to place upward pressure on operating expenses
The Stable Outlook reflects KBRA’s expectation that ad valorem tax support will not be significantly reduced going forward and that tax base growth in line with the favorable trend of the last two decades will continue to provide a growing source of support to the District over the longer term. The outlook further assumes that capital improvements will be completed on time, and that cost escalation will remain manageable and not necessitate significant increases in the tax rate, which we expect will remain well below its Constitutional levy limit. KBRA will monitor operating results as elements of the District’s ambitious $2.5 billion capital program come online.
Rating Sensitivities
For Upgrade
- Not applicable at the AAA rating level.
For Downgrade
- Significant, secular deceleration or declines in tax base growth pressuring ad valorem tax support.
- Trend of sharply increasing operating deficits requiring substantial increases in property tax support.
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