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

October 3, 2013

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

Since the district is a local government without a state, the U.S. Congress authorizes its budget when it approves the federal budget. But Congress has been locked in a stubborn fight over the national budget, leading the federal government to shut down operations on Oct. 1, the first day of the D.C. fiscal year.

The credit ratings agency said the District of Columbia has enough money in reserves to support operations for up to two weeks and that it can replenish those funds as soon as independent auditors certify its surplus for the fiscal year that ended on Sept. 30.

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