KBRA Assigns AA Rating to the City of Jacksonville, FL Special Revenue Bonds; Outlook is Stable

BY Business Wire | MUNICIPAL | 08/13/21 10:42 AM EDT

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) assigns the long-term rating of AA with a Stable Outlook to the City of Jacksonville, FL Special Revenue Bonds Series 2021A and Special Revenue Refunding Bonds, Series 2022A (Forward Delivery).

Key Credit Considerations

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

Credit Positives

  • Ad valorem revenue growth and operating expenditure controls have led to sound unrestricted fund balance and liquidity, which mitigate the risk of decline in economically sensitive non-ad valorem revenues.

Credit Challenges

  • Although the City is addressing high fixed operating costs through previously enacted pension reform measures and the careful adherence to its own debt affordability metrics, pension and debt service obligations are expected to continue to exert pressure on the operating budget, increasing the cost of essential governmental services which, by statute, are prioritized over debt service on the Special Revenue Bonds.

Rating Sensitivities

For Upgrade

  • Reduced pension funding requirements that contribute to a sustained decline in fixed costs and improved operating flexibility.

For Downgrade

  • An increase in operating expenditures and/or decline in general fund revenues that results in a material deterioration of Covenant Revenues relative to outstanding Special Revenue Bond debt service.

To access ratings and relevant documents, click here.


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.

Source: Kroll Bond Rating Agency (KBRA)

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