The 'AA-' rating assigned to the University of Kentucky's series 2005A general receipts revenue bonds reflects: The university's land-grant flagship status along with its nationally recognized academic medical center; Solid state support with its first position in Kentucky's ('AA-') funding hierarchy; Healthy financial operations as evidenced by the generation of operating surpluses for the past three fiscal years, averaging $53.3 million, with an operating surplus of $74.8 million in fiscal 2005; Good liquidity levels and a manageable debt burden; Diverse revenue stream; and History of stable demand. An offsetting credit factor is the potential long-term capital needs of the university and the hospital. Proceeds of the bonds will be used to finance the expansion project for Memorial Coliseum. The expansion
