Fitch Rates Orlando Utilities Commission's Var Rate Electric Sys Sub 2008 Revs 'AA/F1+'

Business Wire, April 11, 2008

NEW YORK -- Fitch affirms the long-term 'AA' rating and assigns a short-term rating of 'F1 ' to the $200,000,000 Orlando Utilities Commission's (OUC) Utility System revenue bonds, series 2008. The long-term rating was issued on Dec. 11, 2007 when the bonds were expected to sell as fixed-rate bonds but will now be issued as variable-rate bonds. In addition, Fitch affirms the rating on all of OUC's outstanding utility system revenue bonds at 'AA'. In addition to serving Orlando, OUC serves the city of St. Cloud. As such, Fitch affirms outstanding St. Cloud sales tax and utility system refunding revenue bonds. The Outlook is Stable. (For more information on the credit quality of OUC, please see Fitch Ratings report, Orlando Utilities Commission, dated April 11, 2008 at www.fitchratings.com). The short-term 'F1 ' rating is based on the liquidity support provided by Banco Bilbao Vizcaya Argentaria, S.A., acting through its New York Branch (the 'Bank'), in the form of a standby bond purchase agreement (SBPA).

The SBPA provides for the payment of the purchase price of tendered bonds during the daily and weekly rate modes, and is sized to cover the principal portion of the purchase price and 34 days of interest at the maximum interest rate of 12%, based upon a year of 365 days. The SBPA will expire on the stated termination date of April 17, 2011, unless such date is extended, or upon the occurrence of certain events of termination as specified in the SBPA. The short-term rating will expire upon any expiration or termination of the SBPA. The remarketing agent for the bonds is Goldman Sachs & Co. The bonds are expected to be delivered on or about April 17, 2008.

The bonds initially bear interest in the weekly rate mode, but may be converted to a daily, term, commercial paper or fixed rate mode. While bonds bear interest in the daily or weekly rate mode, interest is payable on the first business day of each month, commencing May 1, 2008. During the daily and weekly rate modes, holders have the option to tender their bonds on any business day, following the required prior notice to the tender agent. The bonds are subject to mandatory tender: (1) on the second business day prior to the SBPA expiration date; (2) on the date of any SBPA substitution; (3) on any interest mode change date; (4) during the term or commercial paper rate modes, on the business day following the last day of the respective interest period; and (5) on the fifth day preceding the termination of the SBPA. Optional and mandatory redemption provisions also apply to the bonds pursuant to the terms of the authorizing documents.

The proceeds of the bonds will be used to provide for financing the costs of certain capital projects included in the 2008 and 2009 fiscal years of the current capital plan.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.