... believes that the regulatory environment in Oklahoma remains supportive despite the last two rate case outcomes that were below expectations. The company has recently filed a rate case in which it is seeking the recovery of items excluded in the last rate case, including environmental expenditures that were not in place as of the end of the historic test year. Pressure on Credit Metrics: Public Service Company of Oklahoma's (PSO) capex program coupled with limited near-term rate relief will continue to pressure PSO's credit metrics through 2017, with adjusted debt/EBITDAR at approximately 4.3x. If adequate rate relief is granted, Fitch expects leverage to improve to slightly below 4.0x by 2019. After 2017, the FFO fixed-charge coverage ratio is expected to improve to 5.2x¡5.4x from the recent low of 4.4x in 2016. Favorable Operating Environment: The ratings reflect PSO's relatively predictable earnings and cash flows, very competitive retail...
