BULLETIN: Standard&Poor's noted that today's announcement of strategic changes at Aquila Inc. (BBB/Watch Neg/A-2) represents a positive step toward ratings stability, but the plan contains elements that are likely to offset some of the anticipated improvement in credit quality. Most significantly, Aquila intends to adjust its energy marketing and trading operations in a manner that will greatly reduce its risk profile and, therefore, the capital requirements associated with that business. However, the reduced marketing activities and other planned asset divestitures will also affect the company's future ability to produce earnings and cash flow to support debt service. The ultimate impact on credit quality will depend, therefore, on the level of asset sales and whether the net effect of
