Summary: Maryland Economic Development Corp. Frostburg State University (Edgewood Commons); Auxiliary - Stand Alone

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 'BB+' from 'BBB-'. 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). The project has limited reserves beyond its debt service reserve fund. The 2013 bonds, with $10.6 million in debt outstanding as of Oct. 1, 2021, were issued to refund the corporation's series 2002A and 2002B bonds that

...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). The project has limited reserves beyond its debt service reserve fund. The 2013 bonds, with $10.6 million in debt outstanding as of Oct. 1, 2021, were issued to refund the corporation's series 2002A and 2002B bonds that funded a 406-bed student housing project completed in 2003 on the university's campus. The land on which the project was built is leased by the University System of Maryland (USM; see our full analysis published Feb. 2,...

Summary