Press Release|Public Finance

KBRA Affirms AAA Rating with Stable Outlook for Orange County, Florida's Implied General Obligation Credit

5 Jun 2026   |   New York

Contacts

KBRA affirms the long-term rating of AAA for Orange County, Florida's implied General Obligation credit. The Outlook is Stable.

The implied General Obligation rating reflects strong financial performance supported by substantial reserves, ample liquidity, conservative fiscal management, low debt metrics, and the demonstrated resilience of the regional economy. Counterbalancing these strengths are the unique nature of the County’s tourism-focused tax base and economy which remain susceptible to disruption from declines in leisure travel, and a material contingent risk to future ad valorem revenues from a pending statewide constitutional amendment to expand homestead property exemptions.

Key Credit Considerations

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

Credit Positives

  • Sustained record of solid financial performance supported by a strong financial management team, a comprehensive, conservative budget process and regular, quarterly revenue and budget performance monitoring.
  • Maintenance of consistently strong General Fund reserves and liquidity.
  • Limited direct debt burden, low fixed cost ratio and favorable pension and OPEB funding levels contribute to significant financial flexibility.

Credit Challenges

  • Potential legislation that would reduce or eliminate the amount of Ad Valorem taxes that can be collected on homestead properties, if approved by voters in November 2026, has the potential to materially reduce revenues and negatively impact budgetary flexibility.
  • Despite considerable economic diversification, tourism and hospitality remain the County’s primary economic drivers, creating the potential for revenue volatility.

Rating Sensitivities

For Upgrade

  • Not Applicable

For Downgrade

  • Trend of significant long-term decline in taxable assessed valuation.
  • Trend of decline in available General Fund balance and reserves.
  • CS/HJR 1-F represents a material contingent risk to future revenue and fiscal flexibility that could negatively affect the rating if approved and implemented without adequate offsetting measures.

To access ratings and relevant documents, click here.

Methodology

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: 1015411