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Chairman Brown's Statement on Updated Bond Ratings | Politics

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Chairman Brown's Statement on Updated Bond Ratings
Politics
Chairman Brown's Statement on Updated Bond Ratings

 

This statement comes to us from Karen Sibert:

Yesterday, the District received updated bond ratings from the three major credit rating agencies.

 

“I am pleased to learn that the rating agencies have affirmed the District’s solid bond ratings for our general obligation, tax revenue anticipation, and income tax-secured bonds,” said Chairman Brown.  “The changing of Moody’s outlook on our G.O. bonds from stable to negative is a consequence of the actions of the federal government, not any perceived weakness of the District’s fiscal management policies.”

 

The negative outlook, Moody’s wrote, “reflects the District’s unique exposure, as the nation’s capital, to federal government downsizing and the risk that such downsizing could have on the finances of the District.”  The rating agency noted that the MIG 1 rating for the District’s tax revenue anticipation bonds is a reflection of the District’s “adequate projected ending cash balance, sound structural legal features that govern timely repayment of the notes, and the District’s general obligation credit quality.”

 

“I look forward to continuing my work with Mayor Gray and Dr. Gandhi to maintain the District’s strong financial footing and explore ways to improve the District’s cash flow management,” said Brown. “As I stated in my recent letter to my colleagues on the Council, fiscal stability should be our number-one priority and is the foundation for improving the lives of all District residents.”

 

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