Restore T.R.U.S.T.

Market Watch
PRESS RELEASE
Nov. 17, 2011, 3:55 p.m. EST

CHICAGO, Nov 17, 2011 (BUSINESS WIRE) -- Fitch Ratings has assigned an 'AA-' rating to approximately $159 million of Oklahoma Turnpike Authority (OTA or the authority) second senior revenue bonds, series 2011B. Fitch also affirms the 'AA-' rating on OTA's approximately $976.57 million of outstanding refunding second senior revenue bonds. The Rating Outlook is Stable.

KEY RATING DRIVERS:

--Resilient Traffic Demand: The OTA system plays a critical role for in-state traffic and serves as a transportation crossroads. The lack of competition in Oklahoma for long-distance travel and the system's essentiality contributed to an established and stable traffic demand base. The system's diverse mix of interstate and commuter traffic has grown at a combined 6.6% compound annual growth rate (CAGR) since 1985 despite several economic downturns.

--Demonstrated Rate-Making Flexibility: Management has the authority to raise rates without legislative approval. The OTA has raised rates eight times, most recently in 2009 by 16%. Toll rates remain below the national average and demand has been relatively inelastic to toll increases. Further, should revenues be insufficient to cover debt service, the OTA is entitled to a portion of motor fuel excise taxes (MFET) collected on the turnpikes.

--Strong Financial Performance: The OTA's healthy financial performance has translated to annual debt service coverage (including MFET) of at least 1.96 times (x) since 2003, with coverage estimated to be 2.25x for 2011 and growing overall throughout the forecast period. Further, the authority's moderate leverage and strong balance sheet liquidity provide significant financial flexibility. Net debt-to-cash flow available for debt service (CFADS) is currently 3.7x, rising to 4.5x following the anticipated series 2011B issuance of new bonds.

--Variable-Rate Debt Exposure: Following the refunding of its series 2006C and 2006D bonds, the OTA reduced its proportion of variable-rate debt to approximately 34.8% from nearly 55%. This exposure is expected to drop to approximately 30% following its anticipated series 2011B new issuance. Still, counterparty performance and stability in debt interest costs remain a risk consideration.

--Proactive Capital Improvement Plan (CIP): The OTA has the system evaluated annually to determine the minimum amount needed for maintenance and uses its general fund to extend the useful life of its assets. As a result, the pavement condition index for the entire OTA system is 85, which is on the border of excellent condition (the highest).

WHAT COULD TRIGGER A RATING ACTION:

--Material Declines in Traffic Profile: Substantial decreases in commercial traffic and/or increased elasticity of demand to toll rate increases could pressure financial flexibility and negatively affect debt service coverage.

--Marked Changes to Debt Structure: A divergence from the authority's conservative approach to cash-funding capital projects and/or increased debt-related risks due to additional variable-rate issuances could pressure the rating.

SECURITY:

The authority's revenue bonds are secured by revenues of the system after the payment of operating expenses in addition to the MFET apportioned to the OTA for deposit to the credit of the Turnpike Trust Fund.

For additional information, please see Fitch's presale report, 'Oklahoma City, Oklahoma: Oklahoma Turnpike Authority', dated Sept. 29, 2011, and Fitch's press release, 'Fitch Affirms Oklahoma Turnpike Authority's Revs at 'AA-'; Outlook Stable', dated Feb. 18, 2011, available at ' www.fitchratings.com '.

Additional information is available at ' www.fitchratings.com '. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

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