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KBRA Affirms AA+ Rating for City of Dallas, TX General Obligations

30 Oct 2025   |   New York

Contacts

KBRA affirms the long-term rating of AA+ with Stable Outlook for the City of Dallas, TX General Obligations, including General Obligation Bonds, Certificates of Obligation and Equipment Acquisition Notes.

Key Credit Considerations

The ratings were affirmed because of the following key credit considerations:

Credit Positives

  • Strong financial profile reflecting fiscally conservative financial management practices, solid reserves, and healthy liquidity.
  • Robust economic growth, evidenced by a diverse, growing tax and resource base, and unemployment rates which have trended below the state average.
  • History of achieving budgetary balance through operating expense reductions and without the use of reserves, while simultaneously reducing the property tax rate.

Credit Challenges

  • Partial reliance on sales tax receipts for operations exposes revenue base to economic fluctuations.

Rating Sensitivities

For Upgrade

  • Tangible progress in addressing full funding of the actuarially determined pension contributions while maintaining robust strength.

For Downgrade

  • Deviation from the current practice of conservative budgeting.

To access ratings 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1012011