S&P Global Ratings affirmed its 'BBB-' long-term rating on Maryland Economic Development Corp.'s (MEDCO) existing series 2012 student housing refunding revenue bonds (Morgan State University Project). The outlook is stable. The rating reflects our view of the nonrecourse security pledge of net revenues of the 794-bed apartment-style housing project (Morgan View Apartments), strong demand for the project with occupancy rates consistently above 95%, and sufficient debt service coverage (DSC) at 1.6x of maximum annual debt service (MADS) per MEDCO calculation. Although S&P Global Ratings reviewed Morgan State University's (MSU) finances and demand to understand the project and the underlying demand for the project, the bond rating on the project does not reflect the underlying credit characteristics of the university. For
