El Paso ISD credit profile reflects tax pledge strength amid financial pressure
El Paso Independent School District's long-term credit rating reflects the strength of its unlimited tax ad valorem pledge and the relative stability of the El Paso area's economic base. The assessment also highlights weaker financial performance, declining enrollment and lower reserves as a new management team works to realign expenses.
Highlights
- Kroll Bond Rating Agency affirms El Paso ISD's long-term rating citing unlimited tax pledge, stable local economy, and manageable tax-supported debt.
- KBRA notes credit strengths are offset by recent financial performance deterioration, declining student enrollment, and reduced reserves, prompting management to cut expenses.
- Outstanding Unlimited Tax School Building Bonds are backed by ad valorem tax pledge and State's Permanent School Fund Guarantee, but KBRA bases its rating solely on EPISD's underlying credit.
Rating drivers and bond security
As reported by Kroll Bond Rating Agency, the district's long-term rating is supported by its unlimited tax pledge, a sizable and relatively stable local economy, and a manageable tax-supported debt burden.At the same time, the rating agency says those strengths are offset by significant recent deterioration in financial performance, falling student enrollment and reduced reserves. The district's new management team is working to right-size expenses as it responds to those pressures.
Unlimited Tax School Building Bonds are backed by a direct and continuing pledge of ad valorem taxes levied on all taxable property within the district, without limitation as to rate or amount.
Implications for district finance
The district's outstanding Unlimited Tax School Building Bonds also benefit from the State's Permanent School Fund Guarantee Program, which covers the full and timely payment of principal and interest.However, KBRA states that its rating is based solely on the district's underlying credit standing, without factoring in any additional guarantees. That means the agency's view centers on EPISD's own financial condition, operating trends and tax-backed repayment capacity.
Earlier, we reported that S&P Global Ratings warned geopolitical tensions and elevated fiscal spending are raising sovereign borrowing risks as global funding costs stay high.
Latest KBRA News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
