KBRA Assigns A Rating to Port Neches-Groves Independent School District, TX: Unlimited Tax Obligations Series 2026
2 Feb 2026 | New York
KBRA assigns a long-term rating of A to the Port Neches-Groves Independent School District, TX: Unlimited Tax School Building Bonds, Series 2026. The Outlook is Stable.
The Series 2026 Bonds have received conditional approval for and are expected to be issued with a guarantee of the payment of principal and interest from the State’s Permanent School Fund (“PSF”) guarantee program. KBRA’s ratings for these and all other outstanding series, including both those with and without the PSF guarantee, are based solely on the underlying credit standing of the District, without considering support afforded by the PSF guarantee program.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Inherent strength of the District’s unlimited tax ad valorem pledge securing the bonds.
Credit Challenges
- Highly concentrated tax base that has experienced significant volatility and limited growth in recent years.
- Multiple consecutive years of operating deficits and declining fund balances.
- Long-term trend of relatively flat enrollment and evolving statutory funding environment.
Rating Sensitivities
For Upgrade
- Demonstrated improvement in operating performance and growth in fund balances.
For Downgrade
- Continued significant operating deficits and material declines in fund balances.
- A trend of decline in the ad valorem tax base resulting in weakened revenue stability, heightened budgetary pressure, and diminished capacity to support long-term capital needs and debt service obligations.
- Decreasing enrollment trend resulting from increased competition that erodes revenue generation and increases financial pressure on the District.
To access ratings and relevant documents, click here.