Standard&Poor's Ratings Services assigned its 'AA' long-term rating to the District of Columbia's (the district) $27.8 million series 2010A and $58.3 million series 2010B federal highway grant anticipation revenue (GARVEE) bonds. This is the district's first issuance of GARVEE bonds. The outlook is stable. We expect that the series 2010B bonds will be issued as Build America Bonds (BABs), which will be eligible for a 35% subsidy of debt service interest via direct federal payments. Although such payments are part of the pledged revenues securing the bonds, the district is responsible for gross debt service regardless of whether payment is received. The rating reflects our view of very strong future debt service coverage (DSC) based on historical federal
