The 'AAA' rating on Arizona Transportation Board's senior-lien highway revenue bonds series 2003 and the affirmed 'AA' rating on the subordinate second-lien highway revenue bonds reflect the following: Strong legal provisions consisting of a historic 4.0x maximum annual debt service (MADS) additional bonds test for the senior-lien bonds and a 3.0x test for the subordinate-lien bonds. Continued strong debt service coverage with 6.7x MADS coverage for the senior lien, based on actual pledged revenues for fiscal 2002, and 5.1x coverage for the subordinate bonds. Sound and conservative management of the highway program, with a transportation board commitment to maintain 5x MADS coverage on the senior-lien bonds. A proposal by Gov. Janet Napolitano to divert a small portion of prior highway
