(Washington, DC) A bond upgrade is great news for the District of Columbia.
Fitch Ratings upgraded the District of Columbias $3.8 billion in general obligation (GO) bonds to 'A' from 'A-'. Fitch also retained its positive rating outlook for the District, citing the Districts ability to control expenditures combined with strong revenue growth that is expected to continue.
Nothing says success better than this, said Natwar M. Gandhi, the Districts chief financial officer. The clearest evidence that the city is well-managed and headed in the right direction is the confidence of the bond markets. The citizens of the District can take this to the bank in the form of lower interest costs when we borrow money for projects such as schools and transportation. We have achieved this for their benefit.
Fitch also upgraded its rating on the Districts $57 million in series 2002 certificates of participation (COPs) and $71.5 million in series 2003 COPs to 'A-' from 'BBB+'.
This upgrade aligns Fitchs rating for the District with those of the other two major rating agencies Moodys Investors Service, which currently rates the District A2, and Standard & Poors, which also has an A rating for the Districts GO bonds.