Fitch Rates OOCEA Florida $499MM VRBs 'A'.

NEW YORK -- Fitch Ratings has assigned an underlying 'A' long-term rating to the Orlando-Orange County Expressway Authority, Florida's (OOCEA) $499,105,000 variable-rate revenue bonds, series 2005. Fitch also affirms the underlying long-term 'A' rating on the $1.3 billion in outstanding revenue bonds. The Rating Outlook is Stable.

The bonds will be sold through negotiation during the week of Feb. 21, 2005 via a syndicate led by UBS Financial Services Inc., and are expected to be rated 'AAA' based on a guarantee of scheduled debt service under an insurance policy with a monoline insurance company whose insurer financial strength is rated 'AAA' by Fitch. The series 2005 bonds are expected to be backed by five-year standby bond purchase agreements.

The series 2005 bonds are being issued to finance a portion of the costs associated with the authority's $1.2 billion 2005-2009 Five-Year Work Plan, which includes existing system improvements, system expansion projects, new and improved interchanges, and reconfigured toll plazas with express-lane electronic toll collection technology.

The 'A' rating on the bonds reflects the critical nature of the authority's roadway system to the Orlando area's transportation network, its growing service area, which supports continued expansion of its traffic base, and its strong historical financial performance that supports a sizable portion of pay-as-you-go and debt-funded capital investment with infrequent rate increases. Other rating considerations include strong coordination among the expressway authorities in the state and the Florida Department of Transportation, the maintenance of moderate-to-high levels of ratemaking flexibility, and a proactive management team that has not only maintained the physical condition of the facilities in excellent shape, but at levels superior to when they first assumed control.

While the rapidly growing metropolitan area is responsible for strong year-to-year revenue growth, which is a credit strength, it also accentuates potential risks commensurate with such growth. The continued need to grow and expand to meet the needs of a growing community has resulted in a rather highly leveraged system. A more aggressive financial profile including extended debt maturities and capital appreciation bonds that may be issued in 2007 if projected revenues do not meet or exceed expectations (including extended debt maturities and capital appreciation bonds), a first for the authority, could reduce future flexibility. The demand for ongoing expansion in the future will continue to dilute what would otherwise be exponentially growing financial flexibility. As a result of further leveraging, debt service coverage levels, which have ranged from 1.73 times (x) to 1.97x since 2000, are expected to drop. Timely toll increases or other revenue enhancing actions will likely be needed in advance of escalations in operating costs and debt service.

The ratings incorporate the expectation that OOCEA will maintain a healthy ratio of net revenues to debt service and continue to fund a sizable share of capital investment on a pay-as-you-go basis. It also incorporates the expectation that OOCEA will issue an additional $256 million in debt in 2007. The rating also reflects the recent move by OOCEA to enter new business areas, such as providing back-office support to electronic parking-payment systems. While potentially beneficial from a financial and public policy standpoint, these endeavors could result in OOCEA assuming a measure of added risk. Fitch fully expects that the management team will be cognizant of any risks and will pursue these endeavors with an eye toward maintaining bondholder security.

The Orlando-Orange County Expressway Authority is a body politic and corporate and an agency of the State created by Florida Statutes. It operates four limited-access roadways: the Bee Line Expressway (which opened to traffic in 1967), the East-West Expressway (which opened in 1973), the Central Florida Greeneway, a segment of the eastern beltway around Orlando (which opened in sections between 1989 and 2002), and the Western Expressway, a segment of the western beltway around Orlando that is currently in development (which first opened in 2000). Bond proceeds will be used to fund the construction of the Maitland Blvd. project, an additional toll facility. These roadways provide connections to downtown Orlando, the airport, surrounding areas of the city and a by-pass around the congested sections of Interstate 4 around the city limits.