KBRA Assigns AAA Rating to Dallas Independent School District, TX: Unlimited Tax Bonds Series 2025 A, B, and C

NEW YORK--(BUSINESS WIRE)-- KBRA assigns a long-term rating of AAA to the Dallas Independent School District, TX: Multi-Modal Unlimited Tax School Building Bonds, Series 2025A; Unlimited Tax School Building and Refunding Bonds, Series 2025B; and, Unlimited Tax Refunding Bonds, Series 2025C. KBRA additionally affirms the long-term rating of AAA for the District's outstanding Unlimited Tax Bonds (PSF) and Unlimited Tax Bonds (Non-PSF). The Outlook for each obligation is Stable.

The Series 2025A, 2025B, and 2025C Bonds have received conditional approval for and are expected to be issued with a guarantee of the payment of principal and interest from the State?s Permanent School Fund (?PSF?) guarantee program. KBRA?s ratings for these and all other outstanding series, including both those with and without the PSF guarantee, are based solely on the underlying credit standing of the District, without considering support afforded by the PSF guarantee program.

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

• Large, diverse, and growing tax base provides reliable source of payment for the unlimited tax bonds.
• Strong financial management, policies, and procedures have historically sustained large unassigned reserves and strong liquidity.

Credit Challenges

• A secular trend of declining enrollment and statutory changes to the State?s school funding system limit prospects for growth in operating resources.

Rating Sensitivities

For Upgrade

• Not applicable at AAA rating level.

For Downgrade

• While not expected, a trend of decline in the ad valorem tax base may negatively impact the rating.

To access ratings and relevant documents, click here.

Methodologies

• Public Finance: U.S. Local Government General Obligation Rating Methodology
• ESG Global 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) 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. 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.

Doc ID: 1007520

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Source: Kroll Bond Rating Agency, LLC