City Paper is not for tourists
The perks of being the home of the federal government just don’t stop coming. According to Moody’s, an international credit rating agency, the District’s credit rating now has a negative outlook. Thanks to “unique exposure, as the nation’s capital, to federal government downsizing and the risk that such a downsizing could have on the finances of the District,” the city’s AA2 credit rating could fall in the future.
Moody’s also lists as a “challenge” the very way the District is forced to operate: “Constrained ability to access its tax base, due to large proportion of federal and other tax-exempt property, and congressional prohibition on taxing incomes of non-resident commuters.”