...Standard & Poor's Ratings Services has lowered its rating to '##' from '##+' on Kentucky Turnpike Authority's economic development road fund bonds outstanding and revised its outlook to negative. The downgrade reflects lower available revenue and coverage as a result of declining oil prices and tax changes. It also reflects our view that lawmakers in Kentucky have yet to make meaningful progress in addressing its long-term pension liability profile. Although the bonds are an obligation of the road fund, and a lease is in place, there is no direct lien on road fund revenues, which differentiates these bonds from traditional gas tax bonds. In our view, this subjects available revenues to fluctuation based on operations and maintenance costs. Although road fund revenues are constitutionally dedicated to road fund expenditures, we have observed that some states occasionally have redefined, rather than redirected, the revenues or eligible expenditures in ways that benefit their general funds....
