Press Release|Public Finance
KBRA Affirms AAA Rating for Tarrant County Hospital District Limited Tax Bonds
1 Feb 2024 | New York
KBRA affirms the long-term rating of AAA with a Stable Outlook for the Tarrant County Hospital District Limited Tax Bonds.
Key Credit Considerations
The rating action reflects the following key credit considerations:
Credit Positives
- The District is the only safety net healthcare provider in the County and plays a critical role within the County’s public health mission.
- District’s ad valorem tax rate is well lower than the constitutional limit and tax base growth has historically provided strong support without the need for tax rate increases.
Credit Challenges
- Property tax levy was lowered in FY 2024 resulting in a measured reduction in operating support.
- Capital program projects are expected to place upward pressure on operating expenses.
- Macroeconomic environment has caused staffing/retention difficulties and placed upward pressure on wages.
Rating Sensitivities
For Upgrade
- Not applicable given AAA rating level.
For Downgrade
- Significant secular deceleration or declines in tax base growth pressuring ad valorem tax support.
- Trend of sharply increasing operating deficits requiring substantial increases in property tax support.
To access rating and relevant documents, click here.