Standard&Poor's Ratings Services assigned its 'AA+/A-1+' rating, and stable outlook, to Kansas Department of Transportation's (KDOT) series 2004C-1, 2004C-2, 2004C-3, and 2004C-4 adjustable tender highway revenue bonds. The bonds will initially be issued as variable-rate demand obligations. KDOT intends to execute a swap agreement in relation to these bonds. The long-term component of the rating reflects: A high fiscal 2004 total annual debt service coverage (DSC) of 9.62x, as well as 6.37x DSC when federal reimbursements are excluded; The department's strong projected coverage through the life of the bonds, though some decline in maximum annual debt service (MADS) coverage will likely occur in fiscals 2010-2015; A diverse and economically resilient pledged revenue stream, which is largely made up
