Fitch Rts Florida State University $10.4MM Parking Bonds `A+'.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 5, 2001

The State of Florida's approximately $10.4 million Board of Regents, Florida State University housing facility revenue bonds, series 2001 are rated 'A+' by Fitch.

The series 2001 bonds will be issued on parity

with the outstanding parking revenue bonds, series 1992. Fitch has also assigned an `A+' rating to the series 1992 bonds. Bond proceeds will be used to fund construction costs of a four-level parking garage with approximately 1,000 spaces on the main campus in Tallahassee, to purchase a municipal bond insurance policy, fund capitalized interest and a reserve account and to pay cost of issuance. The bonds are expected to be sold on a competitive basis before the end of the month.

The `A+' rating is primarily based on the Florida State University's (FSU) fundamental credit strengths, which place FSU in the `AA' category. The credit strengths include increasing enrollment, positive operating performance, a low debt burden and consistent funding from the state.

The parking revenue bonds will be secured by a pledge of FSU's parking system revenues and a debt service reserve fund. The parking system currently has 10,590 vehicle spaces for students and staff. With a university student body that exceeds 34,000 and additional parking needs for faculty, staff and visitors, the demand for parking far exceeds the number of spaces available. For fiscal 2000, the parking system gross operating revenues were $3.8 million and operating expenses were $2.7 million.

Effective fall 2000, FSU began collecting a student transportation access fee which is mandatory and based on credit hours taken by students. This fee replaces the charges collected for student parking decals. Revenues for fiscal 2001, including the new fee, are projected to increase to $4.8 million. With a planned fee increase in fiscal 2003, the increase from $2.85 per credit hour to $4.90 per credit hour is projected to result in revenues of $6.2 million. Maximum annual debt service is projected to be 2.58 times (x) in fiscal 2003. Even if the fee is not increased in fiscal 2003, MADS coverage is projected to be 1.33x.

Florida State University, located on 455 acres in Tallahassee, is one of the largest and oldest of the ten institutions of higher learning in the State University System of Florida (currently rated `AA-`). Fall 2000 enrollment exceeds 34,000, with undergraduates representing 77% of enrollment. Over 80% of FSU's students are full-time.