Standard&Poor's Ratings Services has affirmed its 'AA' rating and negative outlook on Maryland Economic Development Corp.'s (MEDCO) series 2003 bonds (U.S. Dept Of Defense Lab For Telecom Sci Fac) based on the application of our methodology for rating obligations secured by future U.S. federal cash flows. The rating reflects our assessment of: The strong essentiality of funding capital expenditures for telecommunications scientific research projects, which are deemed to meet the department's mission; Long history of bonds issued in the capital markets backed by these cash flows, with federal legislation supporting this practice; and Limited-to-no local control of federal cash flows. The bonds are secured by lease rental payments from the U.S. federal government. The federal government pays lease
