KBRA Assigns AA+ Rating with Stable Outlook to Wills Point Independent School District, TX Unlimited Tax School Building Bonds Series 2026

NEW YORK--(BUSINESS WIRE)--KBRA assigns a long-term rating of AA+ with a Stable Outlook to Wills Point Independent School District, TX Unlimited Tax School Building Bonds Series 2026.

The Stable Outlook reflects KBRA’s expectation that management will continue to conservatively manage the District’s finances to maintain healthy General Fund (GF) unassigned reserves, the tax base will continue to grow, and that the District’s debt profile will remain manageable as the District addresses its capital needs.

Key Credit Considerations

Credit Positives

• Diverse and growing tax base provides a reliable source of repayment for the Bonds.
• Substantial GF unassigned reserves and cash position provide a strong level of financial flexibility.
• Low debt burden provides ample capacity to issue the authorized bonds as the District works through its capital plan.

Credit Challenges

• Less formal financial policies and procedures, in particular the absence of a formal reserve policy.
• Limited flexibility to generate additional resources based on property tax rate and State school funding restrictions.

Rating Sensitivities

For Upgrade

• Significant growth and diversification of the tax base, particularly towards residential property.

For Downgrade

• A trend of declines in the ad valorem tax base and/or decreasing enrollment resulting in GF deficits and an erosion of reserve levels.

To access ratings and relevant documents, click here.

Methodology

• Public Finance: U.S. Local Government General Obligation 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), 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.

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