Austin, TX – December 1, 2025 – Fitch Ratings has affirmed the “AAA” rating for the PSF’s Bond Guarantee Program (BGP), an incredibly valuable asset to Texas schools and taxpayers.
Fitch noted that school district oversight in Texas is “exceptionally strong” based on the BGP’s unblemished historical record of zero defaults. In calendar year 2025, all “Big 3” rating agencies now have affirmed the soundness of the BGP’s financial structure and program management.
“We are gratified that Fitch has confirmed the Texas Permanent School Fund’s solid position and the steady reliability of the Bond Guarantee Program,” said Robert Borden, Chief Executive Officer and Chief Investment Officer of the Texas PSF Corporation. “The BGP’s AAA rating reduces school district borrowing costs, which can free up resources for the classroom, reduce property taxes, or both. We’re proud to play a role in this program and to help strengthen Texas schools for the long term.”
The BGP guarantees the principal and interest on public school and charter district bonds, enabling districts to access the lowest possible interest rates. It currently backs $144 billion in bonds, saving Texas school districts – and ultimately Texas taxpayers – an estimated $400 million annually in lower borrowing costs.
The Texas PSF Corporation remains committed to protecting and growing the PSF to ensure that Texas schools benefit from lower-cost financing for generations to come.
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