(Washington, DC) Chief Financial Officer Natwar M. Gandhi today announced that Standard & Poors upgraded the Districts general obligation bonds to A with a stable outlook from A-, while Fitch Ratings revised its rating outlook for the District to positive from stable. These ratings were a response to the Districts sale this week and in early December of $400 million of general obligation bonds to fund its fiscal year 2005 capital improvement program.
I am pleased that Standard & Poors and Fitch have recognized the citys financial stability and viability moving forward, said Dr. Gandhi. With soon-to-be-eight consecutive balanced budgets, substantial cash reserves, and a fund balance of $900 million and growing, the District is on an economic roll. A great deal of credit goes to Mayor Anthony A. Williams and the Council for controlling expenditures and protecting the revenue stream.
According to a report issued by Standard & Poors, The upgrade reflects a track record of seven consecutive years of operating surpluses; and strict financial policies and practices 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.
Other rating factors include a diversifying regional employment center anchored by the federal government, services, and tourism; operating surpluses generated in fiscal 2003 and anticipated for fiscal 2004 that increase general fund reserves and allow for the refunding of future liabilities; and strong liquidity increases during a period of economic uncertainties.