Wachovia MERLOTS 2008D23, relating to Kentucky Asset Liability Commission, project notes 2007, Federal Highway Trust Fund First Series, are rated 'AAA/A-1+'. The long-term component of the rating is based on the MBIA-insured underlying bonds. The short-term component of the rating is based on the liquidity facility provided by Wachovia Bank N.A. until Jan. 30, 2009. The negative outlook is based on the insurance provider, MBIA.