The 'AA' rating on Arizona Transportation Board's subordinated highway revenue bonds series 2004B and outstanding parity bonds, as well as the 'AAA' rating on the board's senior-lien highway revenue bonds, reflect: Strong legal provisions in place consisting of a historic 4x maximum annual debt service (MADS) additional bonds test for the senior-lien bonds and a 3x test for the subordinate-lien bonds; Debt service coverage that continues to be strong, with 8.92x MADS coverage for the senior lien, based on actual pledged revenues for fiscal 2004, and 4.85x MADS coverage for the subordinate bonds; and Sound and conservative management of the highway program, with a transportation board commitment to maintain 5x MADS coverage on its senior-lien bonds and 4x on its
