Moody’s says Northern Virginia powerhouse now a liability

ALEXANDRIA — Northern Virginia led the state’s economy through the Great Recession, thanks to a steady stream of jobs from the federal government, but that relationship now could become its Achilles’ heel.

On Dec. 7 Moody’s, one of the three leading credit agencies, assigned Virginia and municipalities in Northern Virginia a “negative” outlook in the face of $600 billion in defense cuts and future federal downsizing.

“This is the new reality for Virginia,” Moody’s Managing Director Naomi Richman said. “What we are seeing now is a structural shift, where now a great source of stability (Northern Virginia’s economy) is becoming a potential vulnerability, because of federal downsizing.”

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