Standard&Poor's Ratings Services assigned its 'AAA' rating to the District of Columbia's income tax revenue bonds, series 2009D (tax-exempt) and series 2009E (taxable) Build America Bonds (BABs). The bonds are secured by a statutory lien and pledge on the trust estate, consisting primarily of income tax revenues and business franchise taxes (income taxes) generated in the district and received by the collection agent, trustee, or district in any fiscal year. The 'AAA' rating reflects our assessment of the district's: Strong coverage of debt service by pledged revenues and the expectation of maintenance of strong coverage. Good historical growth in pledged revenues with significant volatility associated with the individual revenue streams, but relative stability when all revenues are considered.
