KBRA Assigns AAA Rating, Stable Outlook to Los Angeles Unified School District General Obligation Bonds, Series QRR (2026) and 2026 General Obligation Refunding Bonds, Series A

KBRA has assigned a long-term AAA rating with a stable outlook to the Los Angeles Unified School District's General Obligation Bonds, Series QRR (2026) and Refunding Bonds, Series A. The rating reflects a strong tax base and robust bondholder protections under California law. However, the District faces financial challenges, including ongoing deficit spending and a projected decline in fund balance through FY 2028. The rating is sensitive to significant declines in the tax base or deterioration in the District's credit profile.