Moody’s Upgrades Ratings for Various District of Columbia Special Tax Bonds

(Washington, D.C.) - Chief Financial Officer Glen Lee announced today that Moody's Ratings (Moody's) upgraded the ratings of several special tax bonds of the District of Columbia. These upgrades reflect the strength and resilience of the District's revenue streams. The outlook on all of the District's special tax bonds is negative due to the negative outlook Moody's maintains on the sovereign rating of the U.S. government.

Moody's has upgraded the following ratings:

• Income Tax Secured Revenue Bonds: Upgraded to Aaa from Aa1, covering $5.9 billion of outstanding bonds, reflecting the robust and stable income tax revenue.
• Washington Convention and Sports Authority (WCSA) Senior Lien Dedicated Tax Revenue Bonds: Upgraded to Aa2 from Aa3, $366 million outstanding bonds, supported by the growing tourism sector.
• Federal Highway Grant Anticipation Revenue (GARVEE) Bonds: Upgraded to Aa3 from A1 and A2, totaling $236 million outstanding bonds, bolstered by strong maximum annual debt service (MADS) coverage.
• Senior and Subordinate Ballpark Revenue Bonds: Upgraded to Aa1 from A1 and A2, covering $149 million of outstanding bonds, benefiting from solid corporate income tax surcharges and utility taxes.
• Deed Tax Revenue Bonds: Upgraded to Aa2 from A1, with $29 million of outstanding bonds, despite the volatility of the pledged revenue stream.

"Moody's upgrades are a testament to the District's solid financial management and strong economic fundamentals," said Chief Financial Officer Glen Lee. "We are extremely pleased by this recognition of the District's strong governance and financial strength. We will continue to work with the District's elected leaders to maintain the District's financial health and stability and safeguard the interests of the city's residents and stakeholders."

These upgrades, which were a result of reviews initiated on July 24, 2024, following the release of the new U.S. States and Territories methodology, underscore the District's ability to maintain strong coverage of debt service obligations, supported by a diverse and robust economic base.

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