The underlying rating on the District of Columbia's bonds, issued for the National Academy of Sciences, reflects: The academy's long operating history and unique position as advisor to Congress and Federal Agencies, The ability to recover occupancy costs through federal research contracts, A strong balance sheet and healthy liquidity to offset potential fluctuations in contract funding, and An experienced management team with extensive government contacts. The bonds are expected to receive a 'AAA' rating based on AMBAC municipal bond insurance. Other positive factors include a diverse group of federal research sponsors and the ability to reduce staff and expenses if funding contracts. In addition, the financing will allow the academy to create a tangible, sellable asset in the form of
