DC Loses Its Aaa Credit Rating From Moody's Amid DOGE Job Cuts [View all]
Source: Bloomberg
April 24, 2025 at 9:13 AM EDT
Moody’s Ratings downgraded the District of Columbia on Wednesday, causing the nation’s capital to lose its Aaa credit rating as the Trump administration continues to slash federal jobs.
The ratings firm said its downgrade reflects mounting pressures from federal funding cuts, a reduced government workforce and ongoing weakness in commercial real estate. Moody’s changed the rating to Aa1 and revised its outlook to negative.
The district estimates it will lose as many as 40,000 federal jobs, or 21% of its federal workforce. These cuts will “erode the stability that the institutional presence of the federal government has historically had on the District’s economy,” according to a release on Wednesday.
“This rating change is not the result of a degradation of the District’s strong governance and effective fiscal management practices,” Glen Lee, the district’s chief financial officer, said in a statement. “Rather, it stems from broader federal decisions regarding its workforce and spending, and economic trends that are beyond the District’s control and are having a disproportionate impact on the local economy,” Lee said.
Read more: https://www.bloomberg.com/news/articles/2025-04-24/dc-loses-its-aaa-credit-rating-from-moody-s-amid-doge-job-cuts?srnd=phx-politics
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