Austin, TX – September 3, 2025 – S&P Global Ratings has reaffirmed the AAA credit rating for the Texas Bond Guarantee Program (BGP), one of the state’s most critical financial tools for public education.
The BGP is backed by the assets of the Texas Permanent School Fund (PSF), which is managed by the Texas PSF Corporation, and the program is administered by the Texas Education Agency. 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 over $135 billion in bonds, saving Texas school districts – and ultimately Texas taxpayers – an estimated $400 million annually in lower borrowing costs.
“S&P Global’s reaffirmation underscores the Texas Permanent School Fund’s financial strength and the dependability of the Bond Guarantee Program,” said Robert Borden, Chief Executive Officer and Chief Investment Officer of the Texas PSF Corporation. “This rating helps hundreds of school districts and charter schools across Texas lower their financing costs—allowing them to invest more in classrooms, teachers, and students. We are honored to contribute to this unique program and to support Texas schools in such a meaningful and lasting way.”
S&P Global cited the BGP’s level of collateralization, which proved more than capable of withstanding their loss coverage scenario, long track record of no defaults among participating districts and charters, and strong financial policies and practices supporting the program. This rating update follows similar actions by Moody’s in April 2025 and Fitch in December 2024.
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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