...December 21, 2021 CHICAGO (S&P Global Ratings) Dec. 21, 2021--S&P Global Ratings lowered its rating on Maryland Economic Development Corp.'s (MEDCO) series 2013 housing revenue refunding bonds, issued on behalf of Frostburg State University (FSU)'s Edgewood Commons housing project to '##+' from '###-'. The outlook is negative. "The downgrade reflects significant declines in enrollment at the university during the past two years, which have resulted in lower occupancy compared with historical levels and debt service coverage that is projected to be below the project's 1.2x covenant in fiscal 2022--though above 1.0x," said S&P Global Ratings credit analyst Sean Wiley. "The project has limited reserves beyond its debt service reserve fund." The negative outlook reflects our concerns that if occupancy does not improve such that the project is able to meet its debt service covenant, there could be additional pressure on the rating....
