WASHINGTON — From junk two decades ago to the highest possible credit rating, the District’s Wall Street standing has never looked so good.
Moody’s Investors Service has assigned its top AAA credit rating to the District’s outstanding general obligation bonds, covering $4.8 billion in District debt.
It is the first time in history the District has had a Triple-A rating.
“The District has exemplary fiscal governance, and its updated four-year financial plan is its strongest ever,” Moody’s said in a statement. “The dynamism of the District’s economy has led to the largest population in 40 years and strong growth in the tax base. Financial governance is exemplary.”
“In 1995, the District’s bonds were far below junk bond status,” said D.C. chief financial officer Jeffrey DeWitt.
“Today, the District enjoys Moody’s highest possible credit rating of AAA, placing it among the highest rated large cities in America. No city in America has come so far so fast in improving its credit rating.”
Earlier this month, Standard & Poor’s and Fitch bond rating services upgraded the District’s general obligation bond rating from AA to AA+, the second-highest ratings issued by the two agencies.
Both agencies cited the District’s strong financial performance and growing economy despite federal government contraction and said the District has managed its budgets to meet needs such as dedicated funding for the Washington Metropolitan Area Transit Authority.
Surrounding counties, including Arlington, Fairfax, Loudoun, Prince William, Prince George’s and Montgomery, all have the highest AAA ratings from the credit rating agencies.
