The rating upgrade on Kansas Department of Transportation's bonds reflects: * A diverse and economically resilient pledged revenue stream comprising largely motor fuel taxes, registration and license fees, and certain state sales taxes, which in 1997 generated over $464.5 million providing excellent, 5.4 times (x) coverage; * Strong growth in pledged revenues, increasing 130.2% between 1989-1997; * Despite legislative actions to reduce the sales tax transfers to the state highway fund, sales tax revenues have always increased from the prior years allocation; * Very strong legal provisions highlighted by an historical additional bonds test requiring gross revenues of the highway fund to cover maximum debt service outstanding and proposed at least 3x; * The department's experienced management team, which maintained
