KBRA Assigns AAA Rating to Texas Transportation Commission State of Texas Highway Improvement General Refunding Bonds, Series 2024; Affirms Related State G.O. Ratings
26 Jan 2024 | New York
KBRA assigns a long-term rating of AAA to the Texas Transportation Commission State of Texas Highway Improvement General Obligation Refunding Bonds, Series 2024 and affirms the AAA rating for parity bonds. KBRA additionally affirms the long-term rating of AAA for State of Texas General Obligation Bonds and Texas Transportation Commission State of Texas General Obligation Mobility Fund Bonds. The Outlook for each obligation is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
- The State’s broad and diverse economy is among the fastest growing in the Nation.
- Conservative budget procedures and financial management practices support consistently strong reserve levels and operating flexibility.
- The debt burden is low in terms of direct debt per capita and debt expense as a percentage of expenditures.
- Increasing fiscal pressure to fund the necessary infrastructure to keep up with economic and population growth, specifically in the areas of transportation and education.
- Not applicable at AAA rating level.
- Sustained trend of structural imbalance in the State’s general operating funds and significant deterioration in the level of the Economic Stabilization Fund.
To access rating and relevant documents, click here.