District Bond Rating Increases
In November, the financial institution Standard & Poor upgraded the District of Columbia’s bond rating to an ‘A’, up from an ‘A-‘.
Fitch Ratings also revised its rating outlook for the District to positive from stable.
The upgraded ratings were a result of the District’s sale of $400 million of general obligation bonds to fund its fiscal year 2005 capital improvement program.
The Office of the Chief Financial Officer is has successfully provided the city with seven consecutive balanced budgets, cash reserves, and a fund balance of $900 million and increasing.
Financial ratings organizations are crediting the District’s upgraded bond ratings to the seven consecutive years of operating surpluses, strict financial policies and practices exercised by the Mayor and City Council that significantly reduce the risk of future financial difficulties, including statutory reserve levels at 7% of revenues and ongoing budget oversight and approval by congress, with clearly defined triggers that would reinstate the control period.
For more information on the District’s bond rating, go to the DC Chief Financial Officer’s website.