The rating upgrades on the District of Columbia's debt are based on the district's improved financial and administrative factors, resulting largely from federal legislation affecting the district and the expectation that strengthened management controls and reforms, economic development initiatives, and other factors will lead to solid credit fundamentals over the long term. Other rating characteristics include debt pressures and an economy that remains sluggish. A critical component to 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 billion at the end of fiscal 1997. The costs of
