The 'A-' rating on the District of Columbia's tax increment revenue bonds, issued for the Mandarin Oriental Hotel and Gallery Place projects, reflects: The large size of the tax increment financing (TIF) area, which represents a large portion of the downtown central business district; Moderate volatility in the base and increasing diversity; The added strength of pledged sales tax increment revenue, with retail sales tax increment within the district responsible for 44% of the sales tax collection in the entire city; That no additional bonds will be issued on parity with the Mandarin Hotel or Gallery Place projects; and A strong additional projects test, under which the incremental revenues must be able to absorb a substantial decrease in tax increment
