Regulated utility business. Reduced near-term liquidity concerns as a result of its $630 million financing. Reduced capital investment in noncore business units. Execution risk associated with future asset sales. Limited financial flexibility. Weak cash flow from operations. Liquidity challenged by tolling and gas prepay commitments. Working capital needs for 2003 and 2004. Maturing debt obligations of $400 million in 2004. The ratings on Aquila Inc. reflect Standard&Poor's analysis of the company's restructuring plan, financial condition, and available liquidity to meet near-term obligations. Aquila's restructuring plan is dependent on continued asset sales, and Standard&Poor's is concerned with the heavy execution risk involved with the company's asset-sales strategy. Weak market conditions may lead to increased execution risk for
