Economic Development Authority of the City of Fredericksburg, VA Surveillance Report

Rating Summary

The rating for the Economic Development Authority of the City of Fredericksburg’s, VA (the Authority) Taxable Series 2019A Bonds (the Bonds) continues to reflect the sound credit quality of the City of Fredericksburg (the City or Fredericksburg), particularly the City’s location along the I-95 corridor connecting Washington D.C. and Richmond, growing property tax base, consistently strong financial performance, and moderate debt levels. Offsetting these strengths are the dual risks of the appropriation and abatement structure of the City’s funding commitment supporting the Bonds.

The Authority issued the Bonds to finance a portion of the costs of constructing and equipping a stadium to house the Fredericksburg Nationals, a Washington Nationals affiliated minor league baseball team playing in the single-A level Carolina League. The Bonds are payable from an annual City payment fixed at $1.05 million, for a period of 30 years, made from legally available revenues subject…