Press Release|Public Finance
KBRA Affirms AA+ Rating for City of El Paso, TX GO Bonds and Combination Tax and Revenue Certificates of Obligation
10 Apr 2024 | New York
KBRA affirms the long-term rating of AA+ with a Stable Outlook for the City of El Paso, TX General Obligation Bonds and Combination Tax and Revenue Certificates of Obligation. The Outlook is Stable.
Key Credit Considerations
The rating actions reflect the following key credit considerations:
Credit Positives
- Conservative budget practices have supported increasing financial flexibility since 2014.
- Total unassigned and committed general fund balances at 26.4% of expenditures as of FYE 2023 provide a large operating cushion.
- Strong pension funding progress and modest OPEB obligations moderate fixed costs.
Credit Challenges
- Weak per capita income and educational attainment.
- Debt burden is moderately high.
- Population and employment growth have lagged the State and the Nation over the last decade.
Rating Sensitivities
For Upgrade
- Convergence of socioeconomic characteristics toward the State average.
For Downgrade
- Significant and sustained deterioration in taxable assessed value.
- Erosion in reserves and unrestricted liquidity.
To access rating and relevant documents, click here.