Fitch Rates Oklahoma Student Loan Authority 2008II A-1 'AA-/F1+'

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned 'AA-/F1+' ratings to Oklahoma Student Loan Authority's (the authority) $175,305,000 student loan bonds and notes, senior variable-rate demand obligations (VRDOs), series 2008II A-1 Bonds (the Bonds). The ratings are effective on Oct. 29, 2008.

The ratings are based on the support provided by a direct-pay letter of credit (LOC) issued by Bank of America N.A. (the Bank), securing the Bonds. The Bank is obligated to make payments of principal and interest on the Bonds upon maturity, acceleration and redemption, as well as the purchase price for tendered Bonds.

The ratings will expire upon the earliest of: Oct. 28, 2011, the stated expiration date of the LOC, unless such date is extended; any prior termination of the LOC; and defeasance of the Bonds. The LOC provides full coverage of principal plus an amount equal to 202 days' interest at a maximum rate of 12% based on a 365-day year and purchase price for tendered Bonds. The remarketing agent for the Bonds is Banc of America Securities LLC.

The Bonds initially bear interest at the weekly interest rate, but may be converted to term rates. Interest payments are the first business day of March and September of each year, commencing March 2, 2009. Bondholders may tender their Bonds on any business day, provided the trustee is given prior notice of the purchase demand. The Bonds are subject to mandatory tender on any conversion date, any substitution date, the fifth business day prior to the stated expiration or termination date of the LOC (unless the LOC has been extended or an alternate LOC has been delivered). Optional and mandatory redemption provisions also apply to the Bonds.

The proceeds of the Bonds will be used to refund $32,580,000 and $33,000,000 of the authority's series 1996A and 1997A VRDOs, respectively, and $109,725,000 of series 2007A-1 senior auction-rate bonds.

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.