Fitch Rates Central Oklahoma Transportation & Parking Authority Bonds 'A+'.

AUSTIN, Texas -- Fitch has assigned an 'A+' rating to the $27.8 million parking system revenue refunding bonds, series 2005 (delayed delivery) of the Central Oklahoma Transportation and Parking Authority (COTPA, or the authority). Additionally, Fitch has assigned an 'A+' rating to the authority's $55.6 million of parity parking revenue bonds outstanding. The Rating Outlook is Stable. The bonds are scheduled to sell on or about July 11 through a syndicate to be determined.

The bonds are special limited obligations of the authority, payable solely from a pledge of the trust estate under the indenture, including parking revenues of the system, and payments to be made to the authority by the Oklahoma City Water Utilities Trust (OCWUT) pursuant to an agreement of support. Proceeds of the bonds will be used to refund series 1996 parity debt outstanding in advance of the call date.

The 'A+' rating reflects the enhancement provided by the agreement of support from OCWUT, the sustainability of parking rate increases implemented by the authority, and COTPA's presence as the predominant parking provider in downtown Oklahoma City. Also considered in the rating is the sensitivity of parking rates to economic fluctuations and competition. However, OCWUT's bond service reserve replenishment responsibility under the agreement of support is the strength of this credit.

The COTPA is a public trust created to provide for public transportation and parking facilities within Oklahoma City. The authority is divided into the two functions, with the parking division operating six separate parking facilities and five surface parking lots. A private parking operator provides for system operations and management; however, parking rates are set by the trustees of the authority. The authority estimates it controls about 50% of the parking spaces in the central business district.

The authority currently has $55.6 million of parity debt outstanding, and net revenues provided 1.36 times (x) coverage on annual debt service in fiscal 2004. Coverage has ranged from 1.12x to 1.49x over the past five fiscal cycles. The cash and cash equivalents position was sound for fiscal 2004 at $8.6 million, a level which is more than double that of the prior year.

The most recent financial analysis, conducted in 2003, revealed the authority's rates for the system to be in the low end of the market. The analysis also concluded that system rates would need to be increased by 10%, 7%, 5%, and 3% in fiscal years 2004, 2005, 2006, and 2010, respectively, of which all but the last have been implemented. These increases follow five consecutive years of monthly parking permit rate increases at an average of 10% per year. Fiscal 2006 monthly parking permit rates were raised an average of 7%-8%.

The agreement of support with OCWUT (the trust) requires the trust to replenish the bond service reserve from its monthly net revenues in the event of a deficiency. The trust finances projects and development for the city's water utilities. Also required of the OCWUT is that it consider the support requirement when setting its water rates. The agreement is the third priority in the OCWUT indenture, as supplemented, after payments on its revenue bonds, followed by a similar agreement of support for the McGee Creek Authority, whose bonds financed the purchase of water storage rights at a reservoir. The trust has averaged one year of cash on hand in each of the past three fiscal years and, with the exception of fiscal 2003, has covered MADS on its revenue bonds at least 2x over the past four fiscal years. In 1988, the trust did lend the authority $2.4 million pursuant to the agreement, which the authority is repaying without interest over a 20-year period.

Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies, and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.