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KBRA Affirms BB Rating for Imperial Regional Detention Facility Project Senior Lien Refunding Revenue Bonds (Federally Taxable) Series 2014

8 Sep 2025   |   New York

Contacts

KBRA affirms the long-term rating of BB with a Stable Outlook for the Industrial Development Authority of the County of La Paz, Arizona (Imperial Regional Detention Facility Project) Senior Lien Refunding Revenue Bonds (Federally Taxable) Series 2014.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • The facility is well utilized and ICE’s minimum bed payment guarantee ensures solid project performance irrespective of occupancy so long as the ICE contract remains in place.
  • The modern, secure facility is well suited to ICE detainment requirements and is located in an area of significant border activity.
  • ICE-owned facilities are sufficient to meet only a small portion of the agency’s detainment needs, creating a structural need for private detention services.

Credit Challenges

  • Significant political opposition to private prison and immigrant detention present risks to successful operation of the facility through maturity of bonds.
  • ICE has wide discretion to terminate the detainee housing agreement and deficiencies in performance by MTC specifically could result in immediate termination.

Rating Sensitivities

For Upgrade

  • A rating upgrade is not anticipated.

For Downgrade

  • Termination of the ICE detainee housing agreement or reduction in the minimum bed day guarantee.
  • Change in federal policy ending the use of private immigration detention facilities.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011165