NEW YORK--(BUSINESS WIRE)--KBRA assigns a long-term rating of AAA to the Harris County, Texas: Permanent Improvement Refunding Bonds, Series 2024A; Unlimited Tax Road Refunding Bonds, Series 2024A; and Permanent Improvement Tax and Revenue Certificates of Obligation, Series 2024. KBRA additionally affirms the long-term rating of AAA for the County's outstanding Limited Tax Obligations and Unlimited Tax Obligations. The rating Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Sizable and diversifying economy, centered around the nation’s fourth largest city, that has benefitted from above average property tax base growth.
- Strong financial profile supported by generally favorable operations and considerable balance sheet resources, derived from stable property tax collections.
- Robust financial management practices, including a comprehensive budgeting process, frequent intra-fiscal year monitoring, and the maintenance of prudent reserves.
Credit Challenges
- Susceptibility to significant storm activity given its domicile on Texas’s Gulf Coast, as evidenced by Hurricane Harvey.
Rating Sensitivities
For Upgrade
- Not applicable for this rating level.
For Downgrade
- Significant deterioration in operating reserves and liquidity.
- A secular decline in the socioeconomic profile of the County.
To access rating and relevant documents, click here.
Methodologies
- Public Finance: U.S. Local Government General Obligation Rating Methodology
- ESG Global Rating Methodology
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: 1004830
