KBRA Revises Fort Worth City Bond Outlook to Positive; Assigns an AA+ rating and a positive outlook to the bonds of the 2022 series
NEW YORK, May 04, 2022–(BUSINESS WIRE)–KBRA assigns a long-term rating of AA+ with a positive outlook to the General Purpose Redemption and Improvement Bonds, Series 2022 and General Purpose Redemption Bonds, Taxable Series 2022 to be issued by the city of Fort Worth (“the city”). Simultaneously, KBRA confirms the long-term rating of AA+ on all parity bonds rated by KBRA and revises the outlook to positive from stable.
The revised outlook reflects continued favorable growth trends in the City’s resource base and financial operations, coupled with the return to a more stable operating environment characterized by reduced economic uncertainty and revenue volatility as the worst of the Covid-19 pandemic continues to fade. Additionally, the positive outlook reflects KBRA’s expectation that the city’s ongoing debt and obligations will remain well supported by its growing valuation and resource base. If favorable trends for growth in overall assessment values continue and financial operating performance continues to be at such a level that the City’s financial burden remains manageable, an upward trend in ratings to short term might be possible.
The City’s GO Rating reflects strong financial management policies and practices, experienced leadership, and strong financial performance and liquidity measures. Economic growth remains strong, supporting improvements in resident wealth and the City’s valuation base. Although overall debt levels have increased, they remain subdued and continue to benefit from a rapid amortization profile. Fixed costs remain manageable.
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Further information on key credit considerations, sensitivity analyzes which look at factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a driver key to the change in credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially significant sources that were used to prepare the credit rating and information on the methodology(ies) (including all significant models and sensitivity analyzes of the main relevant rating assumptions, the where applicable) used to determine credit rating are available in the information disclosure form(s) located here.
Information on the meaning of each rating category can be found here.
Additional information relating to this rating metric is available in the information disclosure form(s) referenced above. Additional information regarding KBRA’s policies, methodologies, grading scales and disclosures is available at www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a rating agency with the UK Financial Conduct Authority under the temporary registration scheme. In addition, KBRA is designated as the Designated Rating Agency 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.
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