Fitch affirms Public Service Co. of Oklahoma

Fitch Ratings said it affirmed Public Service Co. of Oklahoma's issuer default rating at BBB, senior unsecured debt at BBB+, preferred stock at BBB and pollution control revenue bonds at BBB+.

The outlook is stable.

The agency said the company's ratings take into consideration its relatively stable cash flow generation from regulated electric operations, credit protection measures that are solid for the BBB category, a moderately constructive regulatory environment in Oklahoma and affiliation with parent company, American Electric Power Co. (BBB/stable).

Fitch said rating concerns facing the company primarily relate to the longer term impact of a protracted period of low commodity prices on the local economy, which is heavily dependent on the natural resources industry, predominantly oil and natural gas, as well as the need to fund cash contributions for pension obligations.

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