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 2025 | 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
Credit Positives
- The City’s sustained sound financial operations with a moderate debt burden.
- Growing regional economy and property tax base.
- The City’s financial obligation regarding the stadium is limited to a fixed annual payment representing modest budgetary commitment that is likely to be partially or fully offset by stadium-related taxes.
- The City is receiving the expected benefits of the stadium as 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 all or any portion of the stadium 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 ratings and relevant documents, click here.