The 'AAA' rating on Arizona Transportation Board's highway revenue refunding bonds reflects the following credit strengths: Strong legal provisions consisting of a historic 4 times (x) maximum annual debt service (MADS) additional bonds test for the senior-lien bonds; Continued strong debt service coverage with 7.13x MADS coverage (including these bonds) for the senior lien, based on actual pledged revenues for fiscal 2002; and Sound and conservative management of the highway program with a board commitment to maintain 5x MADS coverage on the senior-lien bonds. The bonds are secured by a senior lien on a diverse collection of motor vehicle and related fuel fees and taxes. These revenues include fuel taxes, vehicle registration fees, and license fees levied by the state.
