Standard&Poor's Ratings Services has affirmed its 'AA' rating on Kentucky Asset Liability Commission's federal highway trust fund (HTF) project notes outstanding, issued on behalf of the Kentucky Transportation Cabinet (the state 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 debt service coverage. More specifically, the rating incorporates what we consider to be the following credit strengths: Strong maximum annual debt service (MADS) coverage of 10.6x from 2011 federal aid highway program receipts; Sound bond provisions, including an additional bonds test (ABT) requiring the
