Summary: Bowie State University, Maryland Maryland Economic Development Corp.; Auxiliary - Stand Alone

S&P Global Ratings revised the outlook to negative from stable and affirmed its 'BBB-' rating on Maryland Economic Development Corp.'s (MEDCO) series 2015 student-housing refunding revenue bonds, issued for Bowie State University's (BSU) Christa McAuliffe Residential Community (CMRC) project. The negative outlook reflects our view of lower-than-expected occupancy at CMRC in recent years, averaging about 91% in fall 2023 and fall 2024, and our expectation that the project will likely not meet its 1.2x debt service coverage (DSC) covenant in fiscal 2025. In our view, a trend of occupancy near current levels and DSC near or below 1.2x would likely result in a downgrade. CMRC's project revenue and assets secure the bonds. A leasehold mortgage further secures the bonds. As

...+ S&P Global Ratings revised the outlook to negative from stable and affirmed its '###-' rating on Maryland Economic Development Corp.'s (MEDCO) series 2015 student-housing refunding revenue bonds, issued for Bowie State University's (BSU) Christa McAuliffe Residential Community (CMRC) project. + The negative outlook reflects our view of lower-than-expected occupancy at CMRC in recent years, averaging about 91% in fall 2023 and fall 2024, and our expectation that the project will likely not meet its 1.2x debt service coverage (DSC) covenant in fiscal 2025. In our view, a trend of occupancy near current levels and DSC near or below 1.2x would likely result in a downgrade....

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