The 'BBB+' rating on District of Columbia's GO bonds reflects the district's: Diversifying local economy anchored by the federal government, services, and tourism; Improved financial management as evidenced by the efficient balancing of the fiscal 2003 budget through both revenue enhancements and expenditure cuts; Sound financial reserves that provide flexibility to help manage during economic uncertainties; and Enhanced debt position. The rating is based on the full faith and credit pledge of the district. A critical component of the improvement in the district's creditworthiness was the implementation of the National Capital Revitalization and Self-Government Improvement Act of 1997. With this act, effective Oct. 1, 1997, the federal government assumed the majority of the district's unfunded pension liability, which totaled $3.7
