It is the rating on the velocity before the knee surgeries. After surgeries, he has not regained those velocities. While considered to be a "power" arm, he only tops out at about 92-94 with his fastball and a high of 87 on his slider. Not sure where you saw him going #1. But yes, by many, they thought he was a high first rounders (i.e. ESPN), where I go the sites that tended to think otherwise. He ranked 4th for RHP at Baseball America if that helps.
"There are still some concerns with Faedo?s profile, of course. Some scouts don?t like his delivery, which can be a bit jerky at times."
"If Faedo can regain his old velocity and smooth out his mechanics, he?s a fairly sure bet to reach the majors in some capacity. He has the stuff to be a lockdown reliever or a solid mid-rotation starter."
There are plenty of drafted players in years past that had or exceeded Faedo's stats and not panned out. His delivery screams "Tommy John". Will he end that way? Lord knows. But as I said, yes he has upside, and if he smooths out his delivery, his ceiling is mid-Rotation.