Standard&Poor's Ratings Services assigned its 'AA-' rating to Kentucky Asset Liability Commission's (the commission) $279.35 million series 2007 federal highway trust fund project grant anticipation revenue notes (GARVEEs), issued on behalf of the Kentucky Transportation Cabinet (the state agency). The 'AA-' Standard&Poor's underlying rating (SPUR) was affirmed. The rating is based on the strengths of the Kentucky direct GARVEE program including high debt service coverage (DSC) levels and Kentucky's conservative approach to leveraging federal grant receipts with no current plans to issue additional parity debt. Proceeds of the 2007 notes are funding lane-widening projects on three of the Commonwealth's interstate highways system. More specifically, the rating reflects the following credit strengths: Very strong pro forma maximum
