Press Release|Public Finance
KBRA Affirms AAA Rating for Harris County Flood Control District, TX Improvement Bonds
6 Jun 2024 | New York
KBRA affirms the long-term rating of AAA with a Stable Outlook for the Harris County Flood Control District, TX Improvement Bonds.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Sizable and diversifying economy, centered around the Nation’s fourth largest city, which has benefited from above average property tax base growth.
- Historically stable property tax collections through a variety of economic cycles, which KBRA believes demonstrates the area’s economic and tax base resilience.
- Ample headroom between levied District Tax rate and the statutory maximum rate.
Credit Challenges
- Susceptibility to significant storm activity given its domicile on Texas’s Gulf Coast, as evidenced by Hurricane Harvey and other tropical systems, which have necessitated borrowing to bolster infrastructure resiliency.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- A sizable and sustained economic contraction for the County / Houston-The Woodlands-Sugarland MSA, resulting in a material reduction in the tax base.
To access rating and relevant documents, click here.