Kroll Bond Rating Agency (KBRA) has assigned a long-term rating of AAA to the Los Angeles Unified School District (LAUSD) for its General Obligation Bonds, Series QRR (2026) and the 2026 General Obligation Refunding Bonds, Series A. This rating indicates a stable outlook, supported by a broad and diverse tax base that has historically shown favorable trends in wealth and property values. Additionally, the bondholder protections provided by California's constitution and state law are deemed robust, enhancing the creditworthiness of these bonds.

However, the district is currently facing financial challenges, including continued deficit spending and projections of a significantly reduced fund balance through fiscal year 2028. KBRA emphasizes that a decline in the tax base or a deterioration in the district’s credit profile could negatively impact the rating. Overall, the outlook remains stable, reflecting confidence in the district's ability to meet its debt obligations.