WASHINGTON -- The rating on the District of Columbia's general obligation bonds was lowered yesterday to BBB-plus from A-minus by Fitch Investors Service Inc.
The downgrade primarily reflects "the magnitude of the projected general fund fiscal year 1995 deficit, not about 10% of revenues, and the resultant stress on cash flow," Fitch said in an announcement released yesterday evening.
Fitch also said it affirmed its BBB rating on the district's $84 million in certificates of participation. However, it revised the credit trend on the COPs to declining from stable.
Fitch said its action does not apply to debt insured by Financial Guaranty Insurance Co. and AMBAC Indemnity Corp.