The 'AA-' rating on the Arizona Transportation Board's grant anticipation notes (GANs) issued for the Arizona Department of Transportation (ADOT) reflects the following credit positives: A sound additional bonds test (ABT) that requires current or historical revenues achieve not less than 1.5x coverage of annual debt service within the current federal aid authorization period and 3.0x coverage after the expiration of the current authorization period; Solid coverage of the 2003A and outstanding parity notes, ranging from 8.3x in fiscal 2005 (MADS) to 35.4x in fiscal years 2009–2015 based on ADOT's fiscal 2002 actual reimbursements of federal aid revenue, with projected debt service coverage no lower than 5.5x including future issuances; and A significant historical precedent that demonstrates strong Congressional commitment
