The 'AA' rating on Arizona Transportation Board's subordinated highway revenue bonds series 2003A and outstanding parity bonds, as well as the 'AAA' rating on the board's senior-lien highway revenue bonds, reflects 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 6.78x MADS coverage for the senior lien, based on actual pledged revenues for fiscal 2003, and 4.94x MADS coverage for the subordinate bonds. Sound and conservative management of the highway program, with a transportation board commitment to maintain 5x MADS coverage on its senior-lien bonds. The possibility that the highway user fund distribution
