Fitch Rating affirms University of Oklahoma housing revenue bonds as

Journal Record, The (Oklahoma City), Dec 23, 2008

Fitch Ratings affirmed its 'A+' rating on the University of Oklahoma's student housing revenue bonds, series 2004. The rating outlook remains negative.

The negative outlook continues to reflect the overall weakening of housing system occupancy levels and debt service coverage over the past several years. Although management has been successful in addressing down-trending occupancy, future improvement may be difficult, especially given the university's projected flat to potentially declining enrollment.

Total occupancy for university housing improved to 84.5 percent in fiscal 2008 from 76 percent in fiscal 2007. Debt service coverage improved to a reported 2.5 times in fiscal 2008 from 1.9 times in fiscal 2007. Occupancy rates for the first half of fiscal 2009 show additional improvement. Should this improvement be sustained, leading to stronger coverage levels, upward revision in the outlook would be considered.

The 'A+' rating continues to reflect a base level of demand for housing on the university's Norman campus; a requirement for all freshman students to live on campus, unless exempted; and OU's autonomous control in setting room and board charges to achieve a minimum 1.25 times coverage of housing system bond debt service.