The Fort Worth Independent School District's credit quality is not expected to be affected by the Texas Education Agency's governance takeover based on academic performance, S&P Global Ratings said Thursday.
A takeover for academic reasons does not necessarily indicate credit weakness, while a takeover spurred by financial factors is more likely to lead to a rating action, according to S&P, which noted Fort Worth ISD has historically maintained robust available reserves.
"Although a board-level takeover is undoubtedly serious, the fundamental credit factors, in our view, are unchanged," the rating agency said in a statement. "We will monitor the situation for any rating implications."
Fort Worth ISD has an AA underlying rating and stable outlook from S&P. Bonds it sold under the Texas Permanent School Fund guarantee program are rated triple-A.
The district, which serves nearly 70,000 students, had $1.66 billion of general obligation bonds outstanding at the end of fiscal 2024, according to its
TEA announced plans on Oct. 23 to appoint a board of managers, a conservator, and potentially a superintendent for the school system, citing five years of "unacceptable academic accountability ratings" at a school that has since been closed.
The Fort Worth School Board scheduled a special meeting on Tuesday to consider possible action related to the state takeover.
"Our elected board is in the best position to drive the sustainable improvements (TEA Commissioner of Education Mike Morath) seeks, with measurable progress already underway," Board President Roxanne Martinez said in a statement. "We respectfully ask him to reconsider his decision as we continue partnering with families, educators, and state leaders to keep this momentum going for every Fort Worth ISD student."
Poor academic performance led to the
