S&P Global Ratings has affirmed its 'AA' rating on Kentucky Asset/Liability Commission?s federal Highway Trust Fund (HTF) federal grant secured debt outstanding. The outlook is stable. The rating reflects our opinion of the credit strengths of a state grant anticipation revenue vehicle (GARVEE) program with consistently high debt service coverage (DSC), sound bond provisions, and additional debt plans that we expect would yield continued high DSC. More specifically, the rating incorporates what we consider to be the following credit strengths: Strong pro forma maximum annual debt service (MADS) coverage of 7.7x based on 2016 federal aid highway program receipts; Sound bond provisions, including an additional bonds test (ABT) requiring the most recent year's actual federal aid receipts to provide at
