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KBRA Affirms A Rating for Wise County, TX Branch Campus Maintenance Tax Lease Revenue Bonds

2 Apr 2026   |   New York

Contacts

KBRA affirms the long-term rating of A for the Wise County, TX Branch Campus Maintenance Tax Lease Revenue Refunding Bonds, Series 2021 (Parker County Junior College District Project). The rating Outlook is Stable.

Key Credit Considerations

The rating was affirmed based on the following key credit considerations:

Credit Positives

  • Strong growth in the County’s Net TAV over the past five years (13.4% CAGR).
  • Meaningful headroom between the current BCMT tax rate ($0.03150/$100) and the maximum rate ($0.0500) supporting future rate increases if needed.
  • Use of BCMT Revenue is limited first to making Lease Payments under the Agreement, with Branch Campus operations and maintenance expenses funded thereafter.

Credit Challenges

  • Weaker structural protections, including the lack of a rate covenant and a weak Additional Bonds Test (ABT).
  • Historical tax-base concentration in the oil and gas industries, although the County continues to pursue economic diversification.

Rating Sensitivities

For Upgrade

  • A significant and sustained increase in Net TAV that strengthens BCMT Revenue and MADS coverage.

For Downgrade

  • While not anticipated, a significant and sustained economic downturn that materially reduces Pledged Revenues and MADS coverage.

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: 1014276