S&P Global Ratings revised its outlook to positive from stable and affirmed its 'BB' long-term rating on Maryland Economic Development Corp.'s (MEDCO) series 2015 student housing refunding revenue bonds. The outlook revision reflects our view of stronger-than-expected maximum annual debt service (MADS) coverage at 1.53x for fiscal 2015, projected at 1.6x for fiscal 2016, and 100% project occupancy in fall 2014 as well as 2015. While the project has a history of mismanagement and financial difficulties resulting in prior-year debt service coverage (DSC) covenant violations, due to strong oversight provided by MEDCO, Capstone, and the University System of Maryland (USM), it has been able to materially improve its financial operations and DSC to healthy levels, which we view positively. We
