Standard&Poor's Ratings Services has assigned its 'AA' rating to the Kentucky Asset/Liability Commission's federal highway trust fund series A 2013 project notes. At the same time, Standard&Poor's affirmed its 'AA' rating on parity debt outstanding. The outlook is stable. The commission is issuing the debt for the Kentucky Transportation Cabinet. The rating reflects our opinion of the credit strengths of a state grant anticipation revenue vehicle (GARVEE) program with consistently high debt service coverage, sound bond provisions, and additional debt plans that we expect would yield continued high debt service coverage. More specifically, the rating incorporates what we consider to be the following credit strengths: Strong pro forma maximum annual debt service (MADS) coverage of 6.39x
