Today, Moody’s Ratings announced a downgrade of the District of Columbia’s credit rating from Aaa to Aa1 and revised the outlook to negative. This action reflects the challenging economic environment facing the District due to significant reductions in the federal workforce and federal spending, as well as ongoing weakness in the commercial real estate market.

This rating change is not the result of a degradation of the District’s strong governance and effective fiscal management practices. Rather, it stems from broader federal decisions regarding its workforce and spending, and economic trends that are beyond the District’s control and are having a disproportionate impact on the local economy.

We remain committed to fiscal prudence and sound financial management and will continue to work closely with the mayor and council to ensure the District’s long-term financial health and sustainability.