Press Release|Public Finance
KBRA Affirms AAA Rating for Austin Independent School District, TX Unlimited Tax Bonds (PSF) and Unlimited Tax Bonds (Non-PSF)
14 Mar 2025 | New York
KBRA affirms the long-term rating of AAA for the Austin Independent School District, TX Unlimited Tax Bonds (PSF) and Unlimited Tax Bonds (Non-PSF).
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Large, diverse, and growing tax base provides reliable source of payment for the unlimited tax bonds.
- Strong financial management, policies, and procedures have historically sustained large unassigned reserves and strong liquidity.
Credit Challenges
- Declining enrolment and statutory changes to the State’s school funding system limit prospects for growth in operating resources.
Rating Sensitivities
For Upgrade
- Not applicable at AAA rating level.
For Downgrade
- Depletion of reserves to a level inconsistent with the rating level.
- While not expected a trend of decline in the ad valorem tax base could negatively impact the rating.
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