Maryland Economic Development Corp.; Auxiliary - Stand Alone

S&P Global Ratings raised its long-term rating on Maryland Economic Development Corp.'s (MEDCO) series 2015 student housing refunding revenue bonds issued on behalf of Bowie State University project to 'BB+' from 'BB'. The outlook is stable. The upgrade reflects our view of the project's stronger-than-expected maximum annual debt service (MADS) coverage at 1.6x for fiscal 2016 and more than adequate projected coverage of 1.5x for fiscal 2017 while recent occupancy levels have been very strong at 100% in fall 2015 and 2016. The student housing project early in its life had some mismanagement, by its initial contract manager, and financial difficulties resulting in prior-year debt service coverage (DSC) covenant violations. However, due to strong oversight provided by MEDCO, direct management

...S&P Global Ratings raised its long-term rating on Maryland Economic Development Corp.'s (MEDCO) series 2015 student housing refunding revenue bonds issued on behalf of Bowie State University project to '##+' from '##'. The outlook is stable. The upgrade reflects our view of the project's stronger-than-expected maximum annual debt service (MADS) coverage at 1.6x for fiscal 2016 and more than adequate projected coverage of 1.5x for fiscal 2017 while recent occupancy levels have been very strong at 100% in fall 2015 and 2016. The student housing project early in its life had some mismanagement, by its initial contract manager, and financial difficulties resulting in prior-year debt service coverage (DSC) covenant violations. However, due to strong oversight provided by MEDCO, direct management provided by Capstone On-Campus Management, LLC (the replacement manager), close collaboration with Bowie State University (BSU), and limited oversight by the University System of Maryland (USM or system)...

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