WASHINGTON -- The District of Columbia is considering creating its first special authority to issue $364 million of tax-backed revenue bonds to finance a major new convention center, but the plan raises both political and credit issues for the city.

Moody's Investors Service officials recently warned city officials that they would be "closely watching" to see if the convention center plan would aggravate the city's cash-flow problems by diverting hotel and restaurant tax revenues from general operations, said Moody's vice president Diane Rostwick.

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