Fitch affirms Bexar County ratings; outlook stable

The composite metric acts asymmetrically, with most issuers (above the 15th percentile for each metric) sufficiently diversified to minimize risks associated with small population and economic concentration. Downward effects of the metric on the Metric Profile are most pronounced for the least economically diverse issuers (in the 5th percentile for the metric or lower). The economic concentration percentage shown below is defined as the sum of the absolute deviation of the percentage of personal income by major economic sectors relative to the U.S. distribution. -- Population size: 2,160,088 Analyst Input (above the 15th percentile) (vs. 2,138,942 2024 Actual) -- Economic concentration: 21.9% (2025) (above the 15th percentile) Demographic and Economic Strength Additional Analytical Factors and Notching: +1.0 notch for Economic and Institutional Strength. The +1 notch for economic and institutional strength reflects Bexar County's role as a core government of the San Antonio-New Braunfels MSA and its economic importance. Analyst Inputs to the Model Analyst inputs to the model reflect metric adjustments to account for historical data anomalies, forward-looking performance shifts or nonrecurring events that may otherwise skew the time series. Analyst input reflects the county's 2025 populations for the trend and size metrics. Long-Term Liability Burden Long-Term Liability Burden - 'Midrange' Bexar County's liabilities to governmental revenue has improved while carrying costs to governmental expenditures remain moderately weak and liabilities to personal income remain strong. The long-term liability composite metric in 2025 is at the 45th percentile, roughly in line with Fitch's local government rating portfolio. -- Liabilities to personal income: 2.3% Analyst Input (86th percentile) (vs. 2.3% 2025 Actual) -- Liabilities to governmental revenue: 246.5% Analyst Input (22nd percentile) (vs. 251.8% 2025 Actual) -- Carrying costs to governmental expenditures: 18.9% Analyst Input (24th percentile) (vs. 18.8% 2025 Actual) The county's direct debt was adjusted for scheduled amortization through fiscal 2026, and the anticipated issuance of $20 million in combined venue tax bonds. Dedicated Tax And Revenue Bond Security The combined venue tax (CVT) bonds are payable from a first lien on the county's 1.75% HOT, a junior lien on the county's 5% motor vehicle rental tax (MVRT), and a $1.3 million annual license payment from the National Basketball Association (NBA) San Antonio Spurs. Fitch's analysis only focuses on the HOT and MVRT, excluding any rating implications from the credit quality of the San Antonio Spurs. The bonds are also backed by a cash-funded debt service reserve fund (equal to AADS). Dedicated Tax And Revenue Bond Key Rating Drivers Revenue Risk - 'bbb' The Revenue Risk Assessment of 'bbb' reflects the narrow revenue pledge, comprised of HOT and motor vehicle rental tax, which are subject to largely discretionary activity, con