KBRA assigns a long-term rating of AA+ to the City of Fort Worth, TX General Purpose Bonds, Series 2024 and Tax Notes, Series 2024. Concurrently, KBRA affirms the long-term ratings of AA+ on the City's General Purpose Bonds, Tax Notes, and Certificates of Obligation (collectively, "the General Obligations"). The Outlook is Stable.

Key Credit Considerations

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

Credit Positives

• Strong financial reserves and liquidity, bolstered by conservative budgeting practices and formal fiscal policies.
• Vibrant economic growth, evidenced by a diverse and rapidly growing tax base.

Credit Challenges

• Pension contributions remain below the ADC, and the funded ratio of the City’s Retirement Fund remains low despite numerous pension reforms enacted to date.
• Partial reliance on potentially volatile sales tax revenue exposes the GF revenue base to economic fluctuations.

Rating Sensitivities

For Upgrade

• Tangible progress in addressing full funding of the actuarially determined pension contribution.

For Downgrade

• Weakened financial flexibility due to lack of improvement or worsening of pension funding metrics.
• Sustained reduction in tax revenues not sufficiently offset by permitted increases in property tax rates.

To access rating 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: 1004238

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