Statement from Chief Financial Officer Glen Lee: District’s Bonds See Strong Demand Following Recent Credit Rating Change

Despite Moody’s recent downgrade of the District’s Income Tax Revenue Bonds to Aa1, the District’s latest bond sale was met with robust investor demand and the cost of borrowing was in line with expectations anticipated in the District’s budget.

On Wednesday, April 30, the District of Columbia, in partnership with its senior managing underwriter Wells Fargo, successfully priced $1.17 billion of Income Tax Revenue and Refunding Bonds, Series 2025A (tax-exempt), and $301 million of Income Tax Revenue Bonds, Series 2025B (federally taxable).

The bonds were originally scheduled to price on Thursday, May 1; however, the District and Wells Fargo chose to accelerate the transaction by one day to take advantage of favorable market conditions. This strategic timing allowed the District to navigate recent market volatility and potential credit headwinds related to the downgrade.

The transaction was well received by the market—both bond series were more than four times oversubscribed, which enabled spreads to be tightened across the board. According to Wells Fargo, the downgrade had no meaningful effect on investor interest or the pricing outcome of the bonds.

This successful transaction reflects continued confidence in the District’s fiscal management and the strength of its credit fundamentals.