Summary: District of Columbia; Federal or State Grant Programs

S&P Global Ratings assigned its 'AA' rating to the District of Columbia's (D.C.) proposed $229.57 million series 2020 federal highway grant anticipation revenue (GARVEE) bonds. At the same time, S&P Global Ratings affirmed its 'AA' long-term rating on D.C.'s GARVEE bonds outstanding. The outlook is stable. The rating reflects our view of strong debt service coverage (DSC) based on historical federal grant receipts and a sound bond structure. All federal highway revenues the district receives are pledged to the bonds' payment; in addition, the series 2011 bonds outstanding have a debt service reserve account equal to maximum annual debt service (MADS). The series 2012 and 2020 bonds do not have a debt service reserve account. The rating also reflects our

...S&P Global Ratings assigned its '##' rating to the District of Columbia's (D.C.) proposed $229.57 million series 2020 federal highway grant anticipation revenue (GARVEE) bonds. At the same time, S&P Global Ratings affirmed its '##' long-term rating on D.C.'s GARVEE bonds outstanding. The outlook is stable. The rating reflects our view of strong debt service coverage (DSC) based on historical federal grant receipts and a sound bond structure. All federal highway revenues the district receives are pledged to the bonds' payment; in addition, the series 2011 bonds outstanding have a debt service reserve account equal to maximum annual debt service (MADS). The series 2012 and 2020 bonds do not have a debt service reserve account. The rating also reflects our opinion of the following credit strengths: + Strong MADS coverage of 6x based on the fiscal 2019 obligation authority; + A memorandum of agreement (MOA) between the district and the Federal Highway Administration that approves the use of...

Summary