FRANKFURT (Standard&Poor's) July 21, 2005--Standard&Poor's Ratings Services said today it affirmed its 'A+' long-term corporate credit rating on Austria-based utility KELAG AG (KELAG). The outlook is stable. "The ratings reflect KELAG's low business risk, owing to its strong position in electricity supply and its monopoly on regional electricity distribution in the Austrian State of Carinthia (AA/Stable/A-1+)," said Standard&Poor's credit analyst Ralf Etzelmueller. KELAG also has advantageous pumped-storage hydro-generation assets and a robust and further improving financial profile. These strengths are offset by KELAG's small size, its operation in a fully liberalized energy market, and further regulatory pressure from the recently announced new incentive-based regime for setting network tariffs. KELAG plans to add another 62
