NEW YORK (Standard&Poor's CreditWire) May 11, 1999--Standard&Poor's today placed its ratings on Empire District Electric Co. on CreditWatch with negative implications following the announcement that UtiliCorp United Inc. will acquire Empire for about $505 million in equity. UtiliCorp will also assume about $260 million of Empire debt in the proposed transaction. UtiliCorp's outstanding ratings were affirmed (see ratings lists below). The negative CreditWatch listing on Empire reflects the weaker credit profile of the much larger UtiliCorp. The affirmation of UtiliCorp's ratings reflect the company's use of equity as its purchase currency and the relatively small size of the transaction in comparison to the company's overall operations. If the merger is consummated as outlined, the ratings of
