Press Release|Public Finance
KBRA Affirms Rating for the EDA of the City of Fredericksburg’s Revenue Bonds, Taxable Series 2019A; Outlook is Stable
29 May 2024 | New York
KBRA affirms the long-term rating of AA for the Economic Development Authority of the City of Fredericksburg’s Revenue Bonds (Fredericksburg Stadium Project), Taxable Series 2019A (City Use Revenues). The Outlook remains Stable.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Favorable credit standing of City of Fredericksburg.
- City financial obligation is limited to fixed annual payment, which represents a very modest budgetary commitment that is likely to be partially or fully offset by stadium-related taxes.
- Stadium is expected to be an asset for the community in the form of a cultural attraction and a catalyst for economic development.
Credit Challenges
- City funding commitment is subject to annual City Council appropriation.
- City funding commitment is subject to partial or full abatement if stadium or any portion of it is damaged and unusable.
- Stadium is not the typical “bricks and mortar” project financed using a municipal appropriation debt mechanism.
Rating Sensitivities
For Upgrade
- Improved City of Fredericksburg credit position.
- Demonstrated trend of successful stadium operation both for baseball and City utilization.
For Downgrade
- Weakened City of Fredericksburg credit position.
- Lower than anticipated stadium availability.
To access rating and relevant documents, click here.