KBRA Revises Outlook for City of Fort Worth Obligations to Positive; Assigns AA+ Rating, Positive Outlook to Series 2022 Obligations

NEW YORK--(BUSINESS WIRE)--KBRA assigns a long-term rating of AA+ with a Positive Outlook to the General Purpose Refunding and Improvement Bonds, Series 2022 and General Purpose Refunding Bonds Taxable Series 2022 to be issued by the City of Fort Worth (“the City”). Concurrently, KBRA affirms the long-term rating of AA+ on all KBRA rated parity obligations and revises the Outlook to Positive, from Stable.

The Outlook revision reflects the continued favorable growth trends across the City’s resource base and financial operations, coupled with the return of a more stable operating environment characterized by reduced economic uncertainty and revenue volatility as the worst of the Covid-19 pandemic continues to wane. Further, the Positive Outlook reflects KBRA’s expectation that the City’s debt and continuing obligations will remain well supported by its growing assessment and resource base. Should favorable growth trends in overall assessment values continue, and the financial operating performance continues to be at a level such that the City’s financial burden remains manageable, upward rating momentum over the near term may be possible.

The City’s G.O. rating reflects strong financial management policies and practices, experienced leadership, and very strong financial performance and liquidity measures. Economic growth remains robust, fostering improvements in resident wealth base and the assessment base of the City. While overall debt levels have increased, they remain moderate and continue to benefit from a rapid amortization profile. Fixed costs remain manageable.

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Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

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 pursuant to the Temporary Registration Regime. 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.