Standard&Poor's Ratings Services today noted that the cancellation of the proposed acquisition of Cogentrix Energy Inc. by Aquila Inc. (BBB/Watch Neg/A-2) is positive for the credit quality of Aquila but will not immediately affect the current ratings or outlook of the company. Aquila was placed on CreditWatch with negative implications when the Cogentrix deal was announced. However, since then the company has embarked on a major strategic restructuring of both its business activities and its financial policies. Thus, resolution of the CreditWatch listing has become dependent on more than an assessment of the effect of the Cogentrix purchase. A comprehensive review of Aquila is underway and will incorporate the effect of the abandoned Cogentrix transaction.
