Standard&Poor's Ratings Services has affirmed its 'AA' rating on Kentucky Asset/Liability Commission's federal highway trust fund project notes outstanding, issued on behalf of the Kentucky Transportation Cabinet (the agency). 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, sound bond provisions, and additional debt plans that we expect would yield continued high coverage. More specifically, the rating incorporates what we consider to be the following credit strengths: Strong maximum annual debt service (MADS) coverage of 11.09x from 2010 federal aid highway program receipts; Sound bond provisions, including an additional bonds test requiring the most recent year's actual federal aid
