Moody’s Upgrades Ratings Following Proactive Debt Management Action
HOUSTON, TX — The Harris County–Houston Sports Authority (HCHSA) today announced the successful completion of a strategic debt defeasance transaction that further strengthens the organization’s long-term credit profile, improves affordability, and enhances future flexibility to support Houston-Harris County’s world-class sports and entertainment venues.
HCHSA used approximately $21.1 million in available funds from the Debt Repayment Account to purchase a portfolio of securities that will defease approximately $28.6 million in principal and accrued interest scheduled between 2031 and 2035. The transaction generates approximately $7.5 million in present value savings and flattens what had been a previously ascending debt service schedule.
The action was executed in accordance with bond indenture requirements and reflects HCHSA’s continued commitment to disciplined and proactive debt management. The transaction coincides with Moody’s Ratings’ upgrade of all outstanding revenue bond liens, including elevating the senior lien to A2, citing improved pledged revenue performance, historically strong debt service coverage, and active debt management practices, including cash defeasances that improve affordability and reduce future debt service pressure.
“Retiring higher-cost debt obligations ahead of schedule was a strategic decision that improves our financial profile and creates greater flexibility for future investments,” said Juan Garcia, Chairman of the Harris County–Houston Sports Authority Board of Directors. “This proactive step reflects disciplined governance and ensures we are well-positioned to support our venues and capitalize on opportunities that strengthen Houston’s sports and events landscape.”
Moody’s noted that HCHSA’s pledged revenues provided approximately 1.33 times maximum annual debt service coverage in fiscal year 2024 — the strongest performance in its history — and highlighted the positive impact of cash defeasances in improving affordability and flattening future debt service requirements.
“This transaction reflects our commitment to responsible stewardship of public, tourism-generated revenue and long-term fiscal discipline,” said Ryan Walsh, CEO of the Harris County–Houston Sports Authority. “We have not only strengthened our financial position but also created additional capacity to reinvest in our world-class venues and keep our region competitive as the premier global sports destination.”
HCHSA was created in 1997 as a political subdivision of the State of Texas to plan, develop and oversee sports and community venue projects in Harris County. Its revenue bonds are secured by tourism-related revenues, including hotel occupancy and rental car taxes — not ad valorem property taxes.
Active debt management has been a cornerstone of HCHSA’s financial strategy. The latest defeasance continues a pattern of prudent oversight designed to improve coverage metrics, reduce long-term debt service pressure and maintain affordability across all lien levels.
With the region preparing to host a series of major events, including FIFA World Cup 2026™, World Baseball Classic and NCAA Men’s Basketball South Regional, the strengthened credit profile and improved debt structure further position HCHSA to sustain venue excellence and operational readiness.
HCHSA currently has approximately $595.7 million in outstanding revenue bonds across its senior, second and junior liens.
Moody’s revised HCHSA’s outlook to stable, reflecting expectations that pledged revenues will continue to support adequate coverage levels through fiscal 2026, supported by Houston’s diverse economic base and a strong major events calendar.
“The work does not stop here,” Walsh added. “We will always look for opportunities to make smart financial decisions that protect the public interest and enhance the marketability of our sports facilities.”
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About the Harris County–Houston Sports Authority and Sports Authority Foundation
The Harris County–Houston Sports Authority (HCHSA), founded in 1997, is responsible for servicing the debt of the world-class sports facilities it was created to build and ensuring their long-term sustainability. In support of this core mission, HCHSA leads the charge in attracting major sporting events to Houston and promoting our region as a home for all sports-related activities. This ultimately results in enhancing our economic development, improving the quality of life for our residents, and reinforcing Houston and Harris County as a premier destination for marquee sporting events. Its 501(c)(3) arm, the Sports Authority Foundation, manages the community engagement and legacy programs tied to major events, including FIFA World Cup 26™ in Houston, through Impact Houston 26. Learn more at Harris County–Houston Sports Authority and Sports Authority Foundation.
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