Moody's Upgrades District's GO Bonds to Aaa
July 12, 2018 - Chief Financial Officer Jeffrey DeWitt announced today that Moody's Investor Service has upgraded the District of Columbia's General Obligation (GO) bond rating to Aaa. This provides the District with the highest possible credit rating for all outstanding General Obligation Bonds. In addition, the District's Tax Increment Financing bonds were upgraded to Aa2.
S&P and Fitch Upgrade District's GO Bonds to AA+
July 3, 2018 - Chief Financial Officer Jeffrey DeWitt announced today that Standard & Poor’s and Fitch bond
rating services have upgraded the District of Columbia's General Obligation (GO) bond rating
from AA to AA+. The rating increase affects $4.8 billion of outstanding GO bonds.
The District of Columbia has begun producing some of the most comprehensive and detailed infrastructure asset data in the business, and may influence the practices of other large frequent issuers.
On October 31, 2018, the Office of the Chief Financial Officer released its updated long-range capital financial plan report for the District of Columbia that includes capital asset replacement needs beyond the normal six-year capital planning period. This report defines and quantifies the challenges the District faces in funding its capital infrastructure needs, and presents the impact of recently enacted legislation that would allow the District to address these challenges over time. The report is intended to assist the Mayor, Council, agency directors, other policymakers and the public in understanding the size of the District's capital infrastructure needs, and how these needs might be addressed over time.
From the Washington Post Editorial Board:
From affordable housing to Metro to the occasional water-supply glitch, the District has its share of issues and problems. It is our job to hold the city accountable on those subjects but, just now, we’d like to focus on the bigger picture: The District is, broadly speaking, a reasonably well-run city. Proof of this comes from the Moody’s bond-rating agency, which in July elevated the city’s general-obligation debt to the highest possible level, AAA. This is not some sort of financial good-conduct medal, but a tangible reward that will enable the city to finance its activities at the lowest interest rates available, saving residents millions of dollars and freeing up resources to provide more and better services. It’s a win-win for both the public and the elected officials — past and present — who helped make it happen.
On May 25, 2018, an article in The Bond Buyer referenced a report released by Standard and Poor's earlier that month titled "Between a Budget and a Hard Place: The Risks of Deferring Maintenance for U.S. Infrastructure." In the report, S&P recognized the approach taken by the District (specifically the OCFO) towards better infrastructure maintenance planning, and how that approach could serve as a model for other state and local governments across the country. The article goes on to state that the rating agency recommended that other state and local governments follow the District of Columbia's approach to inventory, assess, prioritize and develop plans to fund deferred maintenance.
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