The upgrade on District of Columbia's GO bonds reflects the district's improved financial operations, resulting largely from federal legislation affecting the district; enhanced debt position; and the expectation that improved management controls and reforms, economic development initiatives, and other factors will continue to strengthen credit fundamentals over the long term. The rating is based on the full faith and credit of the district and also reflects an economy that is showing signs of coming out of a long-term decline. 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
