The 'AA' rating on Arizona Transportation Board's subordinated highway revenue refunding bonds series 2004A and outstanding parity bonds, as well as the 'AAA' rating on the board's senior-lien highway revenue bonds, reflects the following: There are strong legal provisions in place, 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. Debt service coverage continues to be strong, with 6.78x MADS coverage for the senior lien, based on actual pledged revenues for fiscal 2003, and 4.96x MADS coverage for the subordinate bonds. There is sound and conservative management of the highway program, with a transportation board commitment to maintain 5x MADS coverage on its senior-lien
