The rating on Fayette County School District Finance Corp., Ky.'s bonds, issued for Fayette County Board of Education, reflects the requirement for the state to withhold appropriated state aid for payment of debt service if a school district fails to meet its debt service requirements. For all district debt, the timing of debt service payments is such than interceptable state aid is always sufficient to cover each payment. The 'A+' Standard&Poor's underlying rating (SPUR) reflects the structure of the bonds, with annual risk for non-appropriation, strong state oversight, and the strong creditworthiness of Fayette County School District. The bonds are secured by lease rental payments from the board of education. The district's underlying credit characteristics include: A diverse
