Press Release|Public Finance
KBRA Affirms AA- Rating with Stable Outlook for El Paso County Hospital District, TX - Limited Tax
27 May 2026 | New York
KBRA affirms the long-term rating of AA- with a Stable Outlook on the El Paso County Hospital District, TX General Obligation Bonds (Limited Tax).
The Stable Outlook reflects KBRA’s expectation that the pledged ad valorem tax revenues will continue to grow in line with historical growth trends to support the District’s operations and debt service. The outlook further assumes that future capital improvements will be completed without necessitating significant increases in the tax rate, which we expect will remain well below its Constitutional levy limit.
Key Credit Considerations
Credit Positives
- Role as only safety net healthcare provider in the County is critical to the County’s public health mission.
- Growing tax base provides strong support for ad valorem receipts supporting voter-authorized debt obligations.
- Ad valorem tax rate is well below the Constitutional limit.
Credit Challenges
- Proposed capital initiatives may place upward pressure on operating expenses.
- Macroeconomic environment has placed upward pressure on wages.
Rating Sensitivities
For Upgrade
- A meaningful improvement in socioeconomic metrics.
- Significant growth and diversification of the tax base.
For Downgrade
- Significant secular deceleration or declines in tax base growth pressuring ad valorem tax support.
- Need for significant additional M&O support for operations, thereby limiting I&S capacity under the property tax cap.
To access ratings and relevant documents, click here.