Fitch Rates CSUCI Fin Auth, CA, Rental Hsg & Town Center Bds 'AA+/F1+'.

NEW YORK -- Fitch Ratings has assigned ratings of 'AA+/F1+' to the CSUCI Financing Authority, California, revenue bonds (Rental Housing and Town Center), consisting of $51,395,000 series 2004A and $4,045,000 series 2004B (Taxable). The ratings are based on an irrevocable, direct-pay letter of credit (LOC) issued by Citibank, N.A., securing both series of bonds. The bank is obligated to make payments of (1) principal of and interest on the bonds upon maturity, acceleration and redemption and (2) purchase price for tendered bonds. The rating will expire upon the earliest of: (a) August 6, 2009, the stated expiration of the LOC unless the LOC term is extended; (b) any prior termination of the LOC; and (c) defeasance of the bonds. The LOC provides full coverage of principal plus an amount equal to 183 days of interest at the initial rate which will be in effect through July 31, 2007. While the bonds bear interest in a weekly rate mode, the LOC will provide principal coverage plus an amount equal to 35 days of interest at a maximum rate of 12% for the series 2004A bonds and 15% for the series 2004B bonds, both based on a 365-day year. The LOC also covers purchase price for tendered bonds. The Underwriter and Remarketing Agent for the bonds is Citigroup Global Markets, Inc. The bonds mature on August 1, 2044. The bonds are expected to be delivered on August 12, 2004.

The bonds initially bear interest in a term rate mode through and including July 31, 2007, and are subject to mandatory tender on August 1, 2007. While the bonds bear interest in a term rate mode, interest is payable on each February 1 and August 1, commencing February 1, 2005. On August 1, 2007, the bonds may be converted to a weekly rate mode or another term rate mode. While bonds bear interest in the weekly mode, interest is payable on the first Wednesday of each month. Holders may tender their bonds on any business day with seven days' prior notice during the weekly rate mode. The bonds are subject to mandatory tender on the first day of each interest rate period and on the effective date of an alternate LOC. Bonds are also subject to optional and mandatory redemption.

Bond proceeds will be used to finance and refinance the costs of the acquisition and construction of approximately 216 rental units and approximately 31,000 square feet of retail and commercial space located on the campus of California State University, Channel Islands.