NEW YORK (Standard&Poor's) Nov. 19, 2002--Standard&Poor's Ratings Services today lowered its corporate credit rating on electricity and natural gas distributor Aquila Inc. to 'BB' from 'BBB-' to reflect the slower-than-expected recovery of its credit quality as the company exits the merchant energy business. Recent financial results revealed lower than anticipated operating cash flows and higher debt leverage numbers. The outlook remains negative. Kansas City, Mo.-based Aquila Inc. has approximately $3.6 billion in debt outstanding. "Despite significant progress in its plan to restore its financial strength, Standard&Poor's believes that depressed power prices and negative spark spreads will continue to be a drag on Aquila's operating cash flows on the Network Utilities side of the business,"
