-

KBRA Assigns AA+ Rating to Travis County Hospital District’s (TX) Series 2025 (Limited Tax) Certificates of Obligation (“COs”) and Affirms Outstanding Parity COs at AA+; Stable Outlook

NEW YORK--(BUSINESS WIRE)--KBRA assigns a long-term rating of AA+ to Travis County Hospital District's (the "District's") Series 2025 (Limited Tax) Certificates of Obligation ("COs") and affirms outstanding parity COs at AA+, all with a Stable Outlook. The Certificates are payable from receipts of a separate, distinct and continuing ad valorem tax levied, within the limits prescribed by law, on all taxable property within the District.

Key Credit Considerations

The rating was assigned and affirmed because of the following key credit considerations:

Credit Positives

  • Strength and diversity of the District’s large and growing tax base.
  • Solid legal framework supporting the Certificates’ repayment.
  • District’s ad valorem tax rate remains considerably below the voter-approved tax levy limit, although narrowing.

Credit Challenges

  • Capital needs associated with expanding healthcare services and facilities, including the provision of direct care in select specialties.
  • Challenges inherent to servicing an indigent population that is largely uninsured and underinsured.

Rating Sensitivities

For Upgrade

  • Material growth in the property tax base, which supports the District’s revenues and bolsters the taxing capacity within the voter-approved tax limit.
  • Consistent maintenance of costs below expectations which mitigates the overall tax levy, as the District continues to expand its network of healthcare providers and provision of specialty care services.

For Downgrade

  • Sharp secular deceleration in tax base growth pressuring organic growth of ad valorem tax support.
  • Material decline in headroom under the existing ad valorem tax limit.

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: 1012073

Contacts

Analytical Contacts

Lina Santoro, Director (Lead Analyst)
+1 646-731-1419
lina.santoro@kbra.com

Mallory Yu, Senior Analyst
+1 646-731-1380
mallory.yu@kbra.com

Linda Vanderperre, Managing Director (Rating Committee Chair)
+1 646-731-2482
linda.vanderperre@kbra.com

Business Development Contacts

William Baneky, Managing Director
+1 646-731-2409
william.baneky@kbra.com

James Kissane, Senior Director
+1 646-731-2380
james.kissane@kbra.com

Kroll Bond Rating Agency, LLC

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

Release Versions

Contacts

Analytical Contacts

Lina Santoro, Director (Lead Analyst)
+1 646-731-1419
lina.santoro@kbra.com

Mallory Yu, Senior Analyst
+1 646-731-1380
mallory.yu@kbra.com

Linda Vanderperre, Managing Director (Rating Committee Chair)
+1 646-731-2482
linda.vanderperre@kbra.com

Business Development Contacts

William Baneky, Managing Director
+1 646-731-2409
william.baneky@kbra.com

James Kissane, Senior Director
+1 646-731-2380
james.kissane@kbra.com

Social Media Profiles
More News From Kroll Bond Rating Agency, LLC

KBRA Assigns Preliminary Ratings to GS Mortgage-Backed Securities Trust 2026-CES1 (GSMBS 2026-CES1)

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 6 classes of mortgage-backed notes from GS Mortgage-Backed Securities Trust 2026-CES1 (GSMBS 2026-CES1), a $319.2 million RMBS transaction sponsored by Goldman Sachs Mortgage Company, entirely of closed-end second lien mortgages (CES; 100.0%). The underlying pool is seasoned approximately 7.4 months and comprises 3,961 loans, with AmeriSave Mortgage Corporation (52.4%) as the largest contributing originator. The collateral is charac...

KBRA Releases Research – Loan vs. Lease Aviation ABS: Same Plane, Different Seats

NEW YORK--(BUSINESS WIRE)--KBRA releases research assessing the aviation loan ABS market, highlighting its growth, credit considerations, and evolving role within aviation structured finance. Since the inaugural aviation loan issuances in 2021, the aviation loan asset-backed securities (ABS) sector has experienced continued growth, reaching $4.8 billion in total notional volume through 2025. Collateral in aviation loan ABS typically consists of loans directly to airlines (generally full-recours...

KBRA Assigns Preliminary Ratings to OBX 2026-J1 Trust

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 76 classes of mortgage pass-through notes from OBX 2026-J1 Trust, a $366.7 million prime RMBS transaction. The underlying collateral, comprising 298 fixed-rate, fully amortizing loans is characterized by moderate borrower equity, as evidenced by the WA original LTV of 70.9%, and has a WA original credit score of 783. KBRA’s rating approach incorporated loan-level analysis of the mortgage pool through its Residential Asset Loss Model...
Back to Newsroom