DALLAS — Harris County, Texas now carries triple-A ratings across the board after Standard & Poor's lifted Texas' largest county one notch from AA-plus.
Despite sharp declines in oil prices and talk of layoffs in the industry, "we consider Harris County's economy very strong," analyst Omar Tabani wrote in the Dec. 19 upgrade report. "While we do not expect it in the next two years, any financial deterioration or economic stress caused indirectly by a continued decline in oil prices could result in a downgrade."
The S&P rating now matches the gilt-edge ratings Moody's Investors Service and Fitch Ratings assign Harris County.
Taxable assessed value in the county has increased by an aggregate 23% over the past five years, to just under $347 billion in fiscal 2015, Tabani said.
With a population of more than 4.3 million, Harris County is the nation's third-largest county. The metro area includes Houston and more than 25 municipalities and 20 school districts. Per capita income levels equate to 101% of the national level, Tabani noted, and market value per capita, a wealth indicator, is over $80,000.
"Although the energy sector remains an important component of the regional economy, health care, education, and other service sectors help diversify employment opportunities," Tabani said. "While recent decreases in oil prices may affect some of the region's oil-and-gas-related businesses, we believe that any effects on the county's revenue base will be mitigated by ongoing growth in other sectors."
