Standard & Poor's Ratings Services said it raised its long-term rating and underlying rating (SPUR) on the District of Columbia's general obligation (GO) bonds to AA from AA-minus.
At the same time, Standard & Poor's raised its long-term rating and SPUR to AA-minus from A-plus on the district's certificates of participation and assigned its AA long-term rating to its series 2014C and D GO bonds. The outlook is stable.
"The upgrade is based on a record of general fund surpluses that have strengthened flexibility," said Standard & Poor's credit analyst Hilary Sutton. Following the planned sale of the 2014D GO bonds, the district will have reduced its contingent liability risk.
The GO rating is based on the district's full faith and credit pledge. 2014C bond proceeds will finance capital expenditures, while the 2014D proceeds will refund all of the district's series 2008A and D multimodal GO refunding bonds.
