Fitch: No negative credit implications for D.C. from shutdown

Reuters

WASHINGTON, Oct 3 (Reuters) - The U.S. federal government'scurrent budget shutdown has no negative credit implications forthe nation's capital city of Washington, D.C., Fitch Ratingssaid on Thursday.

Since the district is a local government without a state,the U.S. Congress authorizes its budget when it approves thefederal budget. But Congress has been locked in a stubborn fightover the national budget, leading the federal government to shutdown operations on Oct. 1, the first day of the D.C. fiscalyear.

The credit ratings agency said the District of Columbia hasenough money in reserves to support operations for up to twoweeks and that it can replenish those funds as soon asindependent auditors certify its surplus for the fiscal yearthat ended on Sept. 30.

But Fitch also said the district will likely miss out on taxrevenues related to leisure and hospitality as long as U.S.museums, parks and monuments are shuttered, which it will not beable to recoup.

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