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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.”