The 'AA-' rating on Fayette County School District Finance Corp., Ky.'s school building refunding revenue bonds, issued for Fayette County Board of Education, reflects the requirement for Kentucky 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 that interceptable state aid is always sufficient to cover each payment. The rating reflects the district's: Diverse economic base, anchored by the University of Kentucky; Moderate debt levels and manageable capital program; and Good financial management. Lease rental payments from the board of education secure the bonds. The University of Kentucky anchors the Lexington-Fayette MSA economy. Although the economy
