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

7 Jun 2024   |   New York

Contacts

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

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 very high liquidity.
  • Limited direct debt burden, low fixed cost ratio and favorable pension and OPEB funding levels contribute to significant financial flexibility.

Credit Challenges

  • Despite considerable economic diversification, tourism and hospitality, two industries disproportionately impacted by the pandemic, 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.

To access rating 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) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1004652